Lam Research Corp. fell as much as 3.8% in late trading after revenue fell for a third straight quarter, a sign demand for chipmaking equipment remains sluggish.
(Bloomberg) — Lam Research Corp. fell as much as 3.8% in late trading after revenue fell for a third straight quarter, a sign demand for chipmaking equipment remains sluggish.
Sales in the fiscal first quarter dropped 31% to $3.48 billion, the company said in a statement Wednesday. Still, analysts had projected $3.42 billion.
Chief Executive Officer Tim Archer described the year as a “soft” one for spending on chip production gear, a market where the company competes with Applied Materials Inc., KLA Corp. and others. The industry also has to navigate new export restrictions, which the Biden administration has imposed to keep advanced equipment out of China.
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Fremont, California-based Lam continues to prepare for a return to growth, Archer said in the statement. “There are tremendous growth vectors ahead for Lam, and we are investing strategically to drive long-term outperformance.”
Earnings were also down from a year earlier but better than analysts had feared. They amounted to $6.85 a share last quarter, excluding some items. The average estimate was $6.11.
Lam expects profit in the current quarter of $6.25 to $7.75 a share, compared with an average projection of $6.81. Sales will range from $3.4 billion to $4 billion, versus an estimate of $3.65 billion.
The shares dipped as low as $6.18 in extended trading after closing at $642.24. They had been up 53% this year, part of a broader upswing for chip-related stocks.
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