Wraping up a stock summary: Lam Research Corporation (NASDAQ: LRCX)

On 07 Feb 2020, Lam Research Corporation (NASDAQ: LRCX) spotted trading -5.15% off 52-week high price. On the other end, the stock has been noted 92.79% away from the low price over the last 52-weeks. The stock changed -2.51% to recent value of $315.4. The stock transacted 1600122 shares during most recent day however it has an average volume of 1521.66K shares. The company has 151.28M of outstanding shares and 144.65M shares were floated in the market.

Lam Research Corporation recently reported financial results for the quarter ended December 29, 2019 (the “December 2019 quarter”).

Highlights for the December 2019 quarter were as follows:

Revenue of $2.58B.

U.S. GAAP gross margin of 45.7%, U.S. GAAP operating income as a percentage of revenue of 26.6%, and U.S. GAAP diluted EPS of $3.43.

Non-GAAP gross margin of 45.7%, non-GAAP operating income as a percentage of revenue of 27.1%, and non-GAAP diluted EPS of $4.01.

U.S. GAAP Financial Results

For the December 2019 quarter, revenue was $2,584M, gross margin was $1,180M, or 45.7% of revenue, operating expenses were $493M, operating income was 26.6% of revenue, and net income was $515M, or $3.43 per diluted share on a U.S. GAAP basis. This compares to revenue of $2,166M, gross margin of $982M, or 45.3% of revenue, operating expenses of $444M, operating income of 24.8% of revenue, and net income of $466M, or $3.09 per diluted share, for the quarter ended September 29, 2019 (the “September 2019 quarter”).

Non-GAAP Financial Results

For the December 2019 quarter, non-GAAP gross margin was $1,181M or 45.7% of revenue, non-GAAP operating expenses were $481M, non-GAAP operating income was 27.1% of revenue, and non-GAAP net income was $602M, or $4.01 per diluted share. This compares to non-GAAP gross margin of $983M or 45.4% of revenue, non-GAAP operating expenses of $431M, non-GAAP operating income of 25.5% of revenue, and non-GAAP net income of $480M, or $3.18 per diluted share for the September 2019 quarter.

“Lam closed out calendar 2019 with strong December quarter results,” stated Tim Archer, Lam Research’s President and Chief Executive Officer. “We are executing at a high level in an improving wafer fabrication equipment environment and building a powerful pipeline of new products to fuel future growth.”

Balance Sheet and Cash Flow Results

Cash and cash equivalents, short-term investments, and restricted cash and investments balances reduced to $4.9B at the end of the December 2019 quarter contrast to $5.8B at the end of the September 2019 quarter. This decrease was primarily the result of $1.0B of share repurchases, including net share settlement on employee stock-based compensation, $166.7M of dividends paid to stockholders, and $62.1M of capital expenditures, partially offset by $307.9M of cash generated from operating activities.

Deferred revenue and deferred profit at the end of the December 2019 quarter reduced to $411M and $366M, respectively, as contrast to $481M and $407M, respectively, at the end of the September 2019 quarter. Lam’s deferred revenue balance does not include shipments to consumers in Japan, to whom title does not transfer until consumer acceptance. Shipments to consumers in Japan are classified as inventory at cost until the time of acceptance. The estimated future revenue from shipments to consumers in Japan was about $91M as of December 29, 2019 and $47M as of September 29, 2019.

Its earnings per share (EPS) expected to touch remained -16.80% for this year while earning per share for the next 5-years is expected to reach at 16.10%. LRCX has a gross margin of 45.20% and an operating margin of 25.80% while its profit margin remained 22.90% for the last 12 months.   According to the most recent quarter its current ratio was 3.6 that represents company’s ability to meet its current financial obligations. The price moved ahead of 2.95% from the mean of 20 days, 8.05% from mean of 50 days SMA and performed 34.45% from mean of 200 days price. Company’s performance for the week was 5.76%, 5.14% for month and YTD performance remained 7.87%.

 

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