Why Lam Research (LRCX) Could Beat Earnings Estimates Again

Core Viewpoint - Lam Research (LRCX) is positioned well to continue its trend of beating earnings estimates in the upcoming quarterly report [1] Group 1: Earnings Performance - Lam Research has a strong history of surpassing earnings estimates, averaging a 4.30% beat over the last two quarters [2] - In the last reported quarter, the company achieved earnings of $1.04 per share, exceeding the Zacks Consensus Estimate of $1 per share, resulting in a 4.00% surprise [3] - For the previous quarter, Lam Research was expected to earn $0.87 per share but reported $0.91 per share, delivering a 4.60% surprise [3] Group 2: Earnings Estimates and Predictions - Estimates for Lam Research have been trending higher, supported by its history of earnings surprises [6] - The stock has a positive Zacks Earnings ESP of +0.95%, indicating bullish sentiment among analysts regarding its near-term earnings potential [9] - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests a strong likelihood of another earnings beat [9] Group 3: Earnings ESP Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [7] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [8] - A negative Earnings ESP does not necessarily indicate an earnings miss, but it reduces predictive power [9]