Unpacking Q4 Earnings: Lam Research (NASDAQ:LRCX) In The Context Of Other Semiconductor Manufacturing Stocks
Wrapping up Q4 earnings, we look at the numbers and key takeaways for the semiconductor manufacturing stocks, including Lam Research (NASDAQ:LRCX) and its peers.
The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.
The 14 semiconductor manufacturing stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 2.4%, while next quarter's revenue guidance was 5.6% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and semiconductor manufacturing stocks have held roughly steady amidst all this, with share prices up 0% on average since the previous earnings results.
Lam Research (NASDAQ:LRCX)
Founded in 1980 by David Lam, who pioneered semiconductor etching technology, Lam Research (NASDAQ:LCRX) is one of the leading providers of the wafer fabrication equipment used to make semiconductors.
Lam Research reported revenues of $3.76 billion, down 28.8% year on year, topping analyst expectations by 1.4%. It was a strong quarter for the company, with a significant improvement in its inventory levels and a solid beat of analysts' EPS estimates.
"Lam delivered solid results to close out 2023," said Tim Archer, Lam Research's President and Chief Executive Officer.
Lam Research delivered the slowest revenue growth of the whole group. The stock is up 4.2% since the results and currently trades at $884.
Best Q4: Nova (NASDAQ:NVMI)
Headquartered in Israel, Nova (NASDAQ: NVMI) is a provider of quality control systems used in semiconductor manufacturing.
Nova reported revenues of $134.2 million, down 11.3% year on year, outperforming analyst expectations by 4.8%. It was a very strong quarter for the company, with an impressive beat of analysts' EPS estimates and a significant improvement in its inventory levels.
The stock is up 7.9% since the results and currently trades at $170.
Is now the time to buy Nova? Access our full analysis of the earnings results here, it's free.
Weakest Q4: Kulicke and Soffa (NASDAQ:KLIC)
Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices
Kulicke and Soffa reported revenues of $171.2 million, down 2.9% year on year, falling short of analyst expectations by 0.5%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
The stock is down 8.3% since the results and currently trades at $46.09.
Read our full analysis of Kulicke and Soffa's results here.
Semtech (NASDAQ:SMTC)
Operating for more than 60 years, Semtech (NASDAQ:SMTC) is a provider of analog and mixed-signal semiconductors used for Internet of Things systems and cloud connectivity.
Semtech reported revenues of $192.9 million, up 15.2% year on year, surpassing analyst expectations by 1.2%. It was a weak quarter for the company, with a decline in its operating margin and a miss of analysts' EPS estimates.
The stock is up 15.3% since the results and currently trades at $31.7.
Read our full, actionable report on Semtech here, it's free.
Photronics (NASDAQ:PLAB)
Sporting a global footprint of facilities, Photronics (NASDAQ:PLAB) is a manufacturer of photomasks, templates used to transfer patterns onto semiconductor wafers.
Photronics reported revenues of $216.3 million, up 2.5% year on year, falling short of analyst expectations by 1.7%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates.
Photronics had the weakest performance against analyst estimates among its peers. The stock is down 17.6% since the results and currently trades at $25.75.
Read our full, actionable report on Photronics here, it's free.
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