Lam Research Corp. reported record quarterly results in the extended session Wednesday as the company’s results are showing proof that chip makers are spending more to build out their capacity amid a global semiconductor shortage.
which makes the instruments that foundries use to fabricate silicon wafers, reported fiscal third-quarter net income of $1.07 billion, or $7.41 a share, compared with $574.8 million, or $3.88 a share, in the year-ago period. Adjusted earnings, which exclude deferred compensation-related assets and other items, were $7.49 a share, compared with $3.98 a share in the year-ago period.
Revenue rose to $3.85 billion from $2.5 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast $6.62 a share on revenue of $3.72 billion, based on Lam’s forecast of $6.15 to $6.95 a share on revenue of $3.5 billion to $3.9 billion.
“Lam’s growth trajectory continues with record revenue and earnings per share delivered in the March quarter,” said Tim Archer, Lam’s chief executive, in a statement. “Semiconductors are reaching new heights of strategic relevance, and Lam’s differentiated ability to meet our customers’ scaling challenges positions us well amid a strong wafer fabrication spending environment.”
Chip-equipment makers like Lam are poised for multiple quarters of strength going forward as fabs, or the manufacturing plants that make the silicon wafers used in semiconductors, build out their capacity amid a global shortage in microchips.
Lam forecast adjusted earnings of $6.92 to $7.92 a share on revenue of $3.75 billion to $4.25 billion for the fiscal fourth quarter. Analysts had estimated $6.78 a share on revenue of $3.72 billion.
Lam shares traded between slight gains and losses after hours, following a 4.6% rise in the regular session to close at $641.25. Lam shares closed at a record high of $668.00 as recently as April 8.
Over the past 12 months, Lam shares have soared 163%, while the PHLX Semiconductor Index
has more than doubled, the S&P 500 index
has gained 53%, and the tech-heavy Nasdaq Composite Index
has grown 69%.