NASDAQ$LRCX

Lam Research Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Lam Research reported solid financial performance despite COVID-19 impact.

Lam Research announced financial results for the quarter ended March 29, 2020. The company reported revenue of $2.50 billion and U.S. GAAP diluted EPS of $3.88. Extraordinary efforts by Lam's global teams helped to mitigate the operational impact of the COVID-19 pandemic.

  • Revenue of $2.50 billion.
  • U.S. GAAP gross margin of 46.6%.
  • U.S. GAAP operating income as a percentage of revenue of 27.7%.
  • U.S. GAAP diluted EPS of $3.88.

Headline financials

Total Revenue

$2.5B

Previous: $2.44B+2.6%
EPS (adj)

$0.40

Previous: $0.37+7.6%
Free Cash Flow

$575M

Previous: $547M+5.0%
Net Income

$575M

Previous: $547M+5.0%
Operating Income

$694M

Previous: $566M+22.7%
Gross Profit

$1.17B

Previous: $1.07B+8.6%
Cash & Equivalents

$3.96B

Previous: $4.93B-19.7%
Total Assets

$12.9B

Previous: $12.9B+0.3%
Stock-Based Comp

$47.4M

Previous: $53.2M-10.9%

Revenue & EPS history

Lam Research · Revenue · Quarterly

$2.5B

Q3 2020+2.6%vs Q3 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Lam Research · $1.65B total across 1 segment · Q3 2020

  • Systems
    $1.65B

Forward guidance

While there is limited visibility to near-term macroeconomic conditions and industry supply chain recovery, customer demand for our equipment remains strong. We believe in the long-term resiliency of the semiconductor industry and are focused on providing innovative technology to our customers and positioning Lam for outperformance as industry conditions normalize.

Tailwinds

  • Customer demand for our equipment remains strong.
  • Belief in the long-term resiliency of the semiconductor industry
  • Focused on providing innovative technology to our customers
  • Positioning Lam for outperformance as industry conditions normalize.

Headwinds

  • Limited visibility to near-term macroeconomic conditions
  • Industry supply chain recovery challenges
  • Impact of the COVID-19 outbreak on our operations and financial results
  • Business, political and/or regulatory conditions in the consumer electronics industry may deteriorate or change.
  • Widespread outbreaks of illness may impact our operations and revenue in affected areas

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+2.1%

Avg return

Earnings day

+2.4%

Avg return

5 days after

+5.5%

Avg return

30 days after

64%

43 / 67 earnings

Positive

+15.2%

Q2 2019

Best reaction

-8.2%

Q2 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-1.6%-5.4%+15.0%
Q2 2026+0.0%-15.5%-5.8%
Q1 2026+2.2%+10.2%+1.0%
Q3 2025+6.2%+6.2%+21.5%
Q2 2025+7.4%+6.3%+2.1%
Q1 2025+4.9%+3.4%-0.5%
Q4 2024-2.9%-9.9%-4.0%
Q3 2024+1.6%+4.7%+9.4%
Q2 2024+4.2%+1.9%+11.8%
Q1 2024-7.4%-7.7%+7.8%
Q4 2023+8.0%+10.5%+1.5%
Q3 2023+6.3%+3.8%+18.9%
Q2 2023+2.1%-1.8%-1.8%
Q1 2023+10.5%+16.1%+41.8%
Q4 2022+8.4%+12.4%+1.4%
Q3 2022-2.0%-0.6%-1.1%
Q2 2022-5.6%+0.3%-2.6%
Q1 2022-2.7%-3.3%+12.9%
Q4 2021-0.5%+3.1%-2.1%
Q3 2021+0.2%+4.9%+0.2%
Q2 2021-8.2%-9.3%+2.6%
Q1 2021-1.5%-4.4%+19.3%
Q4 2020+8.5%+9.3%+0.5%
Q3 2020+8.4%+8.5%+7.2%
Q2 2020+3.1%+2.2%-2.7%
Q1 2020+13.1%+19.7%+11.5%
Q4 2019-2.6%-8.4%-0.4%
Q3 2019+5.3%+5.8%-6.6%
Q2 2019+15.2%+18.7%+28.1%
Q1 2019+3.3%+1.9%+2.7%
Q4 2018+10.0%+10.3%-0.2%
Q3 2018+0.1%-5.7%-0.1%
Q2 2018-7.3%-8.9%-10.2%
Q1 2018+4.2%+6.7%+10.8%
Q4 2017+0.2%-3.0%-4.0%
Q3 2017+7.0%+9.9%+17.7%
Q2 2017-0.3%+1.2%+3.6%
Q1 2017-2.6%-0.5%+5.3%
Q4 2016+1.6%-0.9%+2.4%
Q3 2016-2.4%
Q2 2016+1.2%
Q1 2016+3.7%
Q4 2015+1.0%
Q3 2015+10.0%
Q2 2015-0.4%
Q1 2015+3.3%
Q4 2014+1.7%
Q3 2014+9.8%
Q2 2014+0.2%
Q1 2014-2.0%
Q4 2013+2.4%
Q3 2013+7.3%
Q2 2013-1.5%
Q1 2013+7.8%
Q4 2012+0.6%
Q3 2012-3.3%
Q2 2012-2.3%
Q1 2012-7.8%
Q4 2009-0.6%
Q4 2011-0.6%
Q3 2010-1.5%
Q3 2011-1.5%
Q2 2011+1.9%
Q2 2010+1.9%
Q1 2010+4.6%
Q1 2011+4.6%
Q4 2010+4.6%

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