Skip to main content

LRCX STOCK WRITE UP


LRCX (LAM RESEARCH CORP)

  • P/E: 20
  • GAAP DILUTED YEAR-OVER-YEAR EPS GROWTH LAST QUARTER: $2.28
  • SECTOR: ELECTRONIC TECHNOLOGY
  • ASSETS-LIABILITIES: 2.4
  • DIVIDEND: 1.15%

Lam Research Corp is a technology company focused on wafer semiconductor processing equipment. The company is trading near its 52-week high, and has increased in price 48% YTD. It will look to build on exponential EPS growth and high expectations in the next quarter.
In the last quarter, revenue increased by approximately 64% on a year-over-year basis, and 14% from the prior quarter. Gross margin decreased slightly on increased R&D and administrative costs. Assets and available cash decreased in Q1 along with liabilities, while investments increased, and the ratio of assets-liabilities also increased. EPS beat wall street expectations in the last quarter, and the company set guidance below wall street expectations for the upcoming quarter reporting in late July 2017.
Founded in California in 1980, the company makes only 9% of its sales inside the US. Martin Anstice is the company's CEO since 2012. He previously worked at Raychem, and subsequently Tyco Electronics, in the semiconductor segment. The company invested primarily in the 10-nanometer technology, according to Anstice, in the past quarter, and he announced the company's goal as increased R&D spending, explaining the drop in cash on investments as reported in the quarterly earnings release. If the company's investments prove fruitful, wall street will expect the company's share price to rise as sales of its new products increase.
LRCX sells wafer processing equipment. Wafer processing refers to the sequential processes utilized to complete circuits. 10-nanometer technology is the most recent node of semiconductor first shipped in the Samsung Galaxy 8 in April 2017. According to the CEO, LRCX has invested its cash flow in developing wafer, or sequential processing, for these new 10 nm circuits.
The company has a trailing price-to-earnings multiple of 20, and has seen its share price grow almost 50% in 2017. However, with a year-over-year growth rate of over 60%, the share price will rise if wall street expects the trend of success to continue. Martin Anstice has invested in technology with the intent of maintaining a competitive advantage and increase in sales.








Labels:

Comments

Post a Comment

Popular posts from this blog

CTAS STOCK WRITE UP

CTAS (CINTAS CORPORATION) P/E: 26.8 GAAP DILUTED YEAR-OVER-YEAR EPS GROWTH LAST QUARTER: $.02 SECTOR: CONSUMER SERVICES ASSETS-LIABILITIES: 2.09 DIVIDEND: 1.06% CTAS is a company providing uniforms to major companies. They report 7/20/17 after the market close. The company is profitable, and has acquired smaller businesses to grow its revenue, while selling a paper-shredding company it had previously acquired. The company has more cash than debt. Inventories increased by 9%, and revenue increased by 5.3%. Income before taxes grew 2.5%, and $642,000 in losses from discontinued operations and a $9 million acquisition expense reduced the profit improvement to just under 2%. The majority of revenue is derived from uniform rental services. According to wikinvest, CTAS has 30% of market share for uniform rentals due to its commitment to providing specialized products to fit customer needs. Cintas was founded as The Acme Industrial Laundry Company in 19
5 comments
Read more

ISRG STOCK WRITE UP

ISRG (INTUITIVE SURGICAL INC) P/E: 48 GAAP DILUTED YEAR-OVER-YEAR EPS GROWTH LAST QUARTER: $1.13 SECTOR: HEALTH TECHNOLOGY ASSETS-LIABILITIES: 7.05 DIVIDEND: none ISRG is the ticker for Intuitive Surgical Inc, a company endeavoring in the manufacture and distribution of robotic surgical devices. The company recently gained FDA approval for a lower-cost device. They have a clean balance sheet with a history of upside surprises against earnings expectations, and report again 7/20/17. Revenues increased nearly 14%, while EPS increased 32% compared to the Q1 '16 results. While liabilities decreased on a year-over-year basis, assets decreased by a larger margin. R&D spending increased 36%, and administrative costs rose 16%. Taxes were cut in half, although the revenues increased, due to modified accounting principles, and tax benefits for the employee share-based compensation.. The ratio of assets-liabilities decreased from 9.14 to 7.05, which is
1 comment
Read more

PXD STOCK WRITE UP

 PXD (PIONEER NATURAL RESOURCES) P/E: N/A GAAP DILUTED Y-O-Y EPS GROWTH LAST QUARTER: $.67 SECTOR: ENERGY MINERALS ASSETS-LIABILITIES: 1.58 DIVIDEND: .04% Pioneer Natural Resources has recently made the jaw-dropping switch from negative EPS to positive with its last quarter. Situated in the largest oil-producing region in the US, the company is utilizing its good fortune to produce profits. The company has a good balance sheet, a wealth of resources, and a business model which has afforded it growth. This last quarter does not mark the first occasion on which Pioneer has posted a profit. In 2014, and 2012, Pioneer posted a positive EPS for the full year. While the 2016 oil and gas revenues have grown from 2015, the 2014 and 2012 levels were higher. The company's revenue from oil and gas is largely based on market prices. In order to mitigate the market volatility, Pioneer has made efforts to reduce their cost of production, according to their earnin
1 comment
Read more