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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.








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