Lam Research Reports Strong Q4 Performance, Outlook Positive

Lam Research shows strong operational execution in Q4 with robust revenue growth, profit margins, and EPS above expectations. Investors should evaluate the potential impact on stock prices.

Date: 30-01-2025

AI Rating: 7

Earnings Per Share (EPS)
Lam Research reported a diluted EPS of $3.36 for the year 2024, which reflects strong financial performance.
Revenue Growth
The company achieved a revenue of $16.2 billion for the year, with quarterly revenue for December reaching $4.38 billion, marking a 5% increase from the prior quarter.
Operating Margin and Gross Margin
Operating margin was reported at 30.7%, down slightly from 30.9% in the previous quarter, but overall operating margin expanded by 160 basis points over the year. Gross margin was also strong at 48.2% for the year, representing the highest since Lam's merger with Novellus in 2013.
Future Prospects
The outlook for WFE (Wafer Fabrication Equipment) spending is expected to rise to approximately $100 billion in 2025, with advanced packaging and NAND upgrades as major growth drivers. Lam's strategic investments in technologies position it well for continued growth, particularly as the semiconductor market trends towards AI-enhanced products. However, headwinds from reduced spending in certain market segments, particularly within China due to recent regulatory changes, could impact revenue.
Overall, based on consistent operational execution, revenue growth, and strategically placed technologies, Lam Research is poised for positive stock performance in the upcoming quarters with a strong emphasis on higher-margin segments.

Stocks: LRCX