Lam Research tops $4 billion in quarterly sales for first time amid semiconductor shortage
Lam Research Corp. sold more than $4 billion worth of semiconductor-manufacturing equipment and services in a single quarter for the first time and produced record profit as chip companies continue to cash in amid a global shortage.
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Analysts surveyed by FactSet had forecast adjusted earnings of $7.59 a share on revenue of $4.03 billion, based on Lam’s forecast of $7 to $8 a share on revenue of $3.75 billion to $4.25 billion.
Lam also produced record revenue and earnings for its full fiscal year. The company reported annual net income of $3.91 billion, or $26.90 a share, on sales of $14.63 billion, easily topping the previous record in the 2018 fiscal year, which produced profit of $2.38 billion on sales of $11.09 billion.
“Lam continued its record performance in the June quarter, capping a fiscal 2021 with more than 45% revenue growth and an increase of over 70% in earnings per share,” Chief Executive Tim Archer said in a statement. “The combination of strong semiconductor demand and rising device complexity is driving higher levels of wafer fabrication equipment investment.”
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Lam predicted that strong growth would continue to start a new fiscal year. On a conference call Wednesday afternoon, executives guided for fiscal first-quarter adjusted earnings of $7.60 to $8.60 a share on sales of $4.05 billion to $4.55 billion. Analysts on average were projecting earnings of $7.88 a share on revenue of $4.11 billion heading into the report, according to FactSet.
Shares declined more than 2% in after-hours trading despite the earnings beat, following a 2% gain in the regular session to close at $635. Lam shares have soared 82% in the past year, compared with a 58.8% gain for the PHLX Semiconductor Index SOX,
