While results were within ranges forecast by company, they fell short of Wall Street expectations
Lam Research Corp. shares slid in after-hours trading Wednesday after the semiconductor-making-equipment supplier said supply-chain issues that have snarled the output of manufacturers worldwide over multiple quarters continue to hold it back from satisfying strong customer demand.
Lam Research LRCX, +0.47% shares slipped about 1.3% after hours, following a 0.5% gain to close the regular session at $481.45.
“I am disappointed that we are not performing better in a very strong demand environment for our equipment and services,” Lam Research Chief Executive Tim Archer told analysts on the call. “Continued component shortages, along with new challenges that emerged, including COVID-related lockdowns, exacerbated an already stressed supply-chain situation.”
“We are focused on meeting the critical needs of our customers and have committed both the financial resources and workforce required to recover as quickly as possible,” Archer said. “With continued strength in the equipment demand environment, and progressive improvement in our supply chain, we do expect Lam to post another solid year of revenue and EPS growth.”
Meanwhile, U.S. shares of ASML Holding NV ASML, +2.72% closed 2.7% higher Wednesday despite an earnings miss after the chip-equipment supplier’s CEO Peter Wennink told analysts the company was “running at maximum capacity” and that it expected “demand to exceed supply well into next year.”
Lam Research reported third-quarter net income of $1.02 billion, or $7.30 a share, compared with $1.07 billion, or $7.41 a share, in the year-ago period. Adjusted earnings, which exclude amortization and other items, were $7.40 a share, compared with $7.49 a share in the year-ago period.
Revenue rose to $4.06 billion from $3.85 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast adjusted earnings of $7.52 a share on revenue of $4.25 billion, based on Lam’s forecast of $6.70 to $8.20 a share on sales of $3.95 billion to $4.55 billion.
Lam forecast fiscal fourth-quarter adjusted earnings of $6.50 to $8 a share on sales of $3.9 billion to $4.5 billion. Analysts on average were projecting earnings of $8.23 a share on revenue of $4.45 billion, according to FactSet.
Last quarter, Lam Research had also said its lower-than-expected results and outlook were due to supply-chain conditions that had worsened in late December.
Lam Research shares have fallen more than 21% over the past 12 months, compared with a 0.7% advance in the PHLX Semiconductor Index SOX, -0.35%, a 7.9% rise by the S&P 500 index SPX, -0.06%, and a 2.4% decline in the tech-heavy Nasdaq Composite Index COMP, -1.22%.