Lam Research (LRCX) Q4 Earnings: Is A Beat In The Cards?
Zacks Investment Research | Jul 23, 2017 10:25PM ET
We expect wafer fabrication equipment provider, Lam Research Corporation (NASDAQ:LRCX) to beat expectations when it reports fourth-quarter fiscal 2017 results on Jul 26.
Why a Likely Positive Surprise?
Our proven model shows that Lam Research is likely to beat earnings because it has the right combination of two key ingredients.
Zacks ESP: Earnings ESP Filter .
Zacks Rank: Lam Research currently carries a Zacks Rank #1 (Strong Buy). It should be noted that stocks with a Zacks Rank #1, 2 (Buy) or 3 (Hold) have a significantly higher chance of beating earnings. Conversely, stocks with a Zacks Rank #4 or 5 (Sell rated) should never be considered going into an earnings announcement.
The combination of Lam Research’s Zacks Rank # 1 and Earnings ESP of +1.33% makes us confident in looking for an earnings beat.
Its shares have massively outperformed the S&P 500 on a year-to-date basis. While the index gained 10.7%, the stock returned 54.7%.
What is Driving the Better-than-Expected Results?
Lam Research continues to be the market leader in dielectric etches on successful products such as VECTOR Strata, ALTUS deposition, and its Flex and Kiyo etch products. The company sees strong demand for leading-edge silicon in the enterprise market driven by its long-term move to the cloud, storage and networking applications.
The company has been improving on the WFE market share significantly since 2013 and expects to continue making gains.
Lam Research continues to see increased adoption rates of 3D NAND technology, FinFETs and multi-patterning. The company has initiated cost reduction and density scaling for 3D NAND and new memory technologies, which is expected to positively impact its margins.
Moreover, Lam Research is making good progress with its customer support business and anti-trust agency reviews.
Lam Research Corporation Price, Consensus and EPS Surprise
Kemet Corporation (NYSE:KEM) with an Earnings ESP of +11.11% and a Zacks Rank #1.
SBA Communications Corporation (NASDAQ:SBAC) with an Earnings ESP of +10% and a Zacks Rank #1.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple (NASDAQ:AAPL) sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Get The News You Want
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.