Lam Research(LRCX) ZACKS·2025-02-28 17:36Core Viewpoint - Lam Research reported strong second-quarter fiscal 2025 results, with both earnings and revenues exceeding estimates, driven by robust demand in DRAM and Foundry Logic, alongside disciplined cost management [2][3]. Financial Performance - Non-GAAP earnings for Q2 fiscal 2025 were 91 cents per share, beating the Zacks Consensus Estimate by 4.6% and reflecting a 7% year-over-year increase [2]. - Revenues for the quarter reached 4.17 billion in the same quarter last year [3]. Segment Analysis - System revenues accounted for 2.69 billion [4]. - Customer Support Business Group revenues were 1.61 billion [4]. Geographic Revenue Breakdown - In Q2 fiscal 2025, China, Korea, and Taiwan contributed 31%, 25%, and 17% of total revenues, respectively, while Japan, Southeast Asia, the United States, and Europe accounted for 8%, 7%, 9%, and 3% [5]. Operating Metrics - The non-GAAP gross margin was 47.5%, a contraction of 70 basis points from the previous quarter, while non-GAAP operating expenses rose to 5.67 billion, down from 742 million for the quarter, a decrease from 297.6 million and repurchased shares worth 4.65 billion (+/- $300 million), with a projected non-GAAP gross margin of 48% (+/-1%) and an operating margin of 32% [8][9]. Estimate Trends - There has been an upward trend in estimates, with the consensus estimate shifting by 14.58% recently [10]. VGM Scores - Lam Research currently holds an average Growth Score of C, a Momentum Score of B, and a Value Score of C, resulting in an aggregate VGM Score of C [11]. Overall Outlook - Estimates for Lam Research have been trending upward, indicating a promising outlook, with a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the coming months [12].