Lam Research issues above-consensus guidance, but shares drop over 5% after hours — caution signal for chip-equipment names (Oct 21)
What happened
Lam Research guided to adjusted earnings of $2.33 per share on revenue of $8.60 billion, both above consensus estimates of $2.31 and $8.53 billion. Despite the beat-and-raise setup, the stock dropped more than 5% in after-hours trading. The selloff suggests investors wanted a bigger upside surprise or see signs of a demand peak in wafer-fab equipment spending.
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Start your free 14-day trialWho’s affected
- Lam Research (LRCX) — guide beat met with 5%+ after-hours selloff
- Applied Materials (AMAT), ASML, KLA — peer read-through on wafer-fab equipment demand
- Memory and logic chipmakers — softer equipment reception hints at a moderating capex cycle
Sources