Lam Research (LRCX) Q4 2024 earnings summary

Executive summary

• June quarter 2024 revenue, profitability, and EPS all exceeded guidance midpoints, driven by strong CSBG growth and manufacturing milestones, including Malaysia's 5,000th chamber shipment.

• Achieved highest gross margin since 2013 merger, with robust free cash flow and continued strategic investments in R&D and digital transformation.

• Positioned for multi-year WFE spending expansion, especially in AI, memory upgrades, and advanced packaging.

Financial highlights

• June quarter revenue was $3.87 billion, up 2.1% sequentially and above guidance midpoint.

• Gross margin reached 48.5% (non-GAAP), with operating margin at 30.7% (non-GAAP).

• Free cash flow for FY24 was $4.26 billion; diluted EPS was $8.14 (non-GAAP).

• Deferred revenue ended at $1.55 billion, down from March quarter.

Outlook and guidance

• September 2024 quarter revenue expected at $4.05 billion ±$300 million; gross margin at 47% ±1pp; operating margin at 29.5% ±1pp; EPS of $8 ±$0.75.

• Gross margin decline expected due to unfavorable customer mix, with incremental headwind into December.

• CSBG expected to grow modestly in 2024; upgrades in memory fabs anticipated to drive future growth.

• Calendar year 2024 WFE spending expected in mid-$90 billion range, with strong China demand and HBM investments.