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Valued at a market cap of $127.7 billion, Lam Research Corporation (LRCX) designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The Fremont, California-based company’s products and services are designed to help their customers build smaller and better performing devices that are used in a variety of electronic products, including mobile phones, personal computers, servers, wearables, automotive vehicles, and data storage devices. It is expected to announce its fiscal Q4 earnings for 2025 on Wednesday, Jul. 30.
Ahead of this event, analysts expect this tech company to report a profit of $1.20 per share, up 48.2% from $0.81 per share in the year-ago quarter. The company has a solid trajectory of consistently beating Wall Street’s bottom-line estimates in each of the last four quarters. In Q1, LRCX’s EPS of $1.04 outpaced the forecasted figure by 4%.
For fiscal 2025, analysts expect Lam Research to report a profit of $4 per share, up 33.8% from $2.99 per share in fiscal 2024. Its EPS is expected to remain stable year-over-year at $4 in fiscal 2026.
Lam Research has declined 10.3% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 12.3% return and the Technology Select Sector SPDR Fund’s (XLK) 10.1% uptick over the same time frame.
On Apr. 23, LRCX stock climbed 5.1% after its Q3 earnings release. Due to higher system sales and customer support-related revenues, the company’s overall revenue grew 24.4% year-over-year to $4.7 billion, surpassing the consensus estimates by 1.7%. Moreover, its adjusted EPS of $1.04 improved 14.3% on a quarterly basis and topped the analyst expectations by 4%. Despite near-term tariff-related uncertainty, the company maintained a positive outlook for Q4. It expects revenue of approximately $5 billion, and projects adjusted EPS of $1.20 at the midpoint of its guidance range.
Wall Street analysts are moderately optimistic about LRCX’s stock, with a "Moderate Buy" rating overall. Among 30 analysts covering the stock, 19 recommend "Strong Buy," three indicate "Moderate Buy," and eight suggest "Hold.” While the company is trading above its mean price target of $95.76, its Street-high price target of $125 suggests a 25.2% premium to its current price levels.
