Lam Research Q3 FY6/24 Earnings Review

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Memories Unfade

by “Jams O’Donnell"

Summary:

• Q3 revenue at $3.8bn slightly above guidance
• Increase in spares sales signals things are looking up
• Rating: Hold.

Lam Research (LRCX) reported earnings for Q3 2024 on April 24th. No surprises with respect to the previous quarter's guidance: semiconductor capital equipment suppliers are deeply embedded in the R&D and technology roadmap of their customers; lead time - time from order to delivery - is quite long; they usually know a year or more in advance what they're going to deliver in a  given quarter.

Fluctuations, when they happen, deliver valuable data points on the state of the industry cycle. For  LRCX in Q3 2024, the really good news is the uptick in spares sales. In CEO T. Archer's own words: