Adjusted earnings dropped to $3.62 per share during the three-month period from $3.70 per share in the fourth quarter of 2018. Reported profit fell sharply to $541.8 million or $3.51 per share from $1.02 billion or $5.82 per share last year. The bottom line, however, topped the Street view.
“Lam’s June quarter results reflect our strong track record of execution. We are making solid progress on our innovation roadmap, and with multiple technology inflections ahead of us, Lam is in an excellent position to win,” said CEO Timothy Archer.
For the first quarter, the management expects revenues of $2.15 billion, plus or minus $150 million. The forecast for adjusted earnings is $3.00 per share, plus or minus 20 cents. Unadjusted earnings are expected to be $2.91 per share in the September quarter, plus or minus 20 cents. The company is looking for gross margins of about 45%.
The long-term outlook for the semiconductor industry is positive as it made a significant recovery in 2019 after being battered by multiple headwinds including the US-China trade war softening global economy and the cryptocurrency crash.
Last week, Lam Research shares surged to an all-time high. The stock has gained 53% so far this year and 13% in the past twelve months. It closed Wednesday’s regular session lower.