Lam Research stock slips after hours despite earnings beat, upbeat outlook

The company reported fiscal fourth-quarter net income of $1.21 billion, or $8.74 a share, compared with $1.02 billion, or $7.30 a share, in the year-ago period. Adjusted earnings, which exclude amortization and other items, were $8.83 a share.

Revenue rose to $4.64 billion from $4.15 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast adjusted earnings of $7.32 a share on revenue of $4.21 billion, based on Lam’s forecast of $6.50 to $8 a share on sales of $3.9 billion to $4.5 billion.

“Lam delivered record levels of revenue and earnings per share in the June quarter, while continuing to operate in a supply-constrained environment,” said Lam Research Chief Executive Tim Archer in a statement.

Lam forecast fiscal first-quarter adjusted earnings of $8.75 to $10.25 a share on sales of $4.6 billion to $5.2 billion. Analysts on average were projecting earnings of $8.72 a share on revenue of $4.63 billion for the the first quarter, according to FactSet.

Supply-chain issues have dogged the company since last year, as it has other companies in the space like KLA Corp. KLAC, +4.40%, which reports earnings Thursday. Last week, ASML Holding NV  ASML, +4.20% also mentioned supply-chain constraints and lowered its revenue forecast for the year as fast orders will push revenue recognition for those sales into next year.

Lam Research shares have fallen 26% over the past 12 months, compared with a 10% drop in the PHLX Semiconductor Index  SOX, +4.75%,   a 9% decline by the S&P 500 index  SPX, +2.62%,   and an 18% fall in the tech-heavy Nasdaq Composite Index  COMP, +4.06%.