Earnings and Growth Analysis : Lam Research (NASDAQ:LRCX)


Earnings results for Lam Research (NASDAQ:LRCX)

Lam Research Corporation is expected* to report earnings on 10/21/2020 after market close. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 9 analysts’ forecasts, the consensus EPS forecast for the quarter is $5.17. The reported EPS for the same quarter last year was $3.18.

Lam Research last announced its earnings data on July 29th, 2020. The semiconductor company reported $4.78 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.20 by $0.58. The firm had revenue of $2.79 billion for the quarter, compared to the consensus estimate of $2.68 billion. Its quarterly revenue was up 18.2% on a year-over-year basis. Lam Research has generated $15.95 earnings per share over the last year and currently has a price-to-earnings ratio of 24.0. Lam Research has confirmed that its next quarterly earnings report will be published on Wednesday, October 21st, 2020.

Analyst Opinion on Lam Research (NASDAQ:LRCX)

25 Wall Street analysts have issued ratings and price targets for Lam Research in the last 12 months. Their average twelve-month price target is $374.08, predicting that the stock has a possible upside of 2.89%. The high price target for LRCX is $450.00 and the low price target for LRCX is $265.00. There are currently 2 hold ratings and 23 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Lam Research has received a consensus rating of Buy. The company’s average rating score is 2.92, and is based on 23 buy ratings, 2 hold ratings, and no sell ratings. According to analysts’ consensus price target of $374.08, Lam Research has a forecasted upside of 2.9% from its current price of $363.57. Lam Research has been the subject of 14 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Lam Research (NASDAQ:LRCX)

Lam Research has a dividend yield of 1.43%, which is in the bottom 25% of all stocks that pay dividends. Lam Research has only been increasing its dividend for 2 years. The dividend payout ratio of Lam Research is 32.60%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Lam Research will have a dividend payout ratio of 22.03% next year. This indicates that Lam Research will be able to sustain or increase its dividend.

Insiders buying/selling: Lam Research (NASDAQ:LRCX)

In the past three months, Lam Research insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $17,753,830.00 in company stock. Only 0.34% of the stock of Lam Research is held by insiders. 85.27% of the stock of Lam Research is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Lam Research (NASDAQ:LRCX

Earnings for Lam Research are expected to grow by 14.12% in the coming year, from $20.68 to $23.60 per share. The P/E ratio of Lam Research is 24.03, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 19.72. The P/E ratio of Lam Research is 24.03, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 66.37. Lam Research has a PEG Ratio of 1.33. PEG Ratios above 1 indicate that a company could be overvalued. Lam Research has a P/B Ratio of 10.18. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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