Lam Research stock gains on earnings optimism

Lam Research Corp. LRCX, +1.94% shares gained in late trading Tuesday after the chip-equipment company forecast strong earnings to come despite doubts about the sector. The chip-equipment sector has been volatile for months due to concerns about chip makers’ plans for production, with Lam Research stock falling more than 21% so far this year. Shares gained more than 4% in after-hours action Tuesday, though, after the company reported fiscal first-quarter results and said it expects to beat expectations in the current quarter. Lam claimed income of $533 million, or $3.23 a share, on revenue of $2.33 billion, down from $2.38 billion a year ago. After accounting for amortization and other effects, the company claimed profit of $3.36 a share, down from $3.46 a share a year ago. Analysts on average expected Lam to report adjusted earnings of $3.22 a share on sales of $2.66 billion, according to FactSet. For the fiscal second quarter, Lam predicted adjusted earnings of $3.45 a share to $3.85 a share, well higher than analysts’ average expectations of $3.29 a share. Lam expects revenue of $2.35 billion to $2.65 billion, while analysts were expecting revenue of $2.49 billion.

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