Lam Research (LRCX) Q3 2023 Earnings Call Transcript Summary
Lam Research (LRCX) recently held its Q3 2023 earnings call, where the company reported mixed results. Here are the key bullish and bearish points from the call:
Bullish Points:
1. Revenues exceeded the midpoint of guidance for the September quarter.
2. Gross margin, operating margin, and earnings per share surpassed the high end of the guidance range for the second consecutive quarter.
3. Revenue and earnings per share are expected to improve further in the December quarter.
4. NAND bit demand increased to high teens, and DRAM spending is modestly up.
5. Lam is well-positioned to benefit from both cyclical and structural drivers of demand.
6. Strong growth story with etch and deposition as fundamental enablers of higher performance semiconductor device architectures.
7. Solid track record of execution and commitment to strategic investments.
8. Operating margin for the current quarter was 30.1%, higher than the June quarter level of 27.3%.
9. Non-GAAP tax rate for the quarter was 13.4%, in line with expectations.
10. Lam returned over 120% of free cash flow in the quarter and has $2.7 billion remaining on its board-authorized share repurchase plan.
Bearish Points:
1. NAND weakness continued in the quarter, and customers adjusted spending levels down.
2. Foundry/logic segment is down slightly due to weakness in both leading edge and non-China-based mature node investments.
3. Timing and pace of WFE recovery remain uncertain.
4. Current business environment remains challenging.
5. R&D spending was higher, and 2024 may be an R&D spending growth year.
6. Trailing etch mature node weakness outside of China.
7. Near-term weakness in non-China trailing etch.
8. Potential headwinds in gross margin due to mix normalization.
9. Uncertainty in revenue growth next year.
10. Difficult to predict the pace of recovery in fab operations.
For more information about Lam Research's earnings call, you can read the relevant news: Lam Research (LRCX) Q3 2023 Earnings Call Transcript
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