Lam Research Q3 Profit Surges Amid Strong Revenue Growth, Stock Up

(RTTNews) - Lam Research Corp. (LRCX), a supplier of wafer fabrication equipment and services to the semiconductor industry, Wednesday said net income for the third quarter increased significantly from the previous year, amid a strong growth in revenues. The stock gained close to 5 percent in extended trading.

Net income soared to $164.4 million or $0.96 per share from $19.0 million or $0.11 per share for the year-ago quarter.

Excluding items, net income totaled $216.4 million or $1.26 per share. On average, 19 analysts polled by Thomson Reuters expected the company to earn $1.17 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the third quarter rose to $1.23 billion from $844.93 million a year ago. Wall Street expected revenue of $1.22 billion for the quarter.

Gross margin improved to 43.2 percent from 40.2 percent. Operating income surged to $191.94 million from $10.82 million.

The latest results included an income tax expense of $17.69 million compared to an expense of $24.01 million last year.

Martin Anstice, Lam Research's president and chief executive officer, said, ''The consistency of our results reinforces the potential to deliver sustained outperformance through solid execution of our growth strategy.''

Looking forward to the fourth quarter, the company forecasts revenue of $1.24 billion, plus or minus $50 million, earnings of $0.98 per share, plus or minus $0.07 per share, and adjusted earnings of $1.21 per share, plus or minus $0.07 per share.

Analysts currently expect the company to earn $1.09 per share on revenue of $1.16 billion for the fourth quarter.

LRCX, which closed down 1.5 percent at $52.25, climbed 4.7 percent in after-market trading and was at $54.70.