Lam Research Corp. shares slipped in the extended session Wednesday even after the wafer-fab-equipment market’s results topped Wall Street expectations and its earnings forecast midpoint was a penny more than the consensus estimate.
The company reported fiscal first-quarter net income of $887.4 million, or $6.66 a share, down from $1.43 billion, or $10.39 a share, in the year-ago period. Adjusted earnings fell to $6.85 a share from $10.42 in the year-ago period.
Analysts analysts surveyed by FactSet had forecast first-quarter adjusted earnings of $6.15 a share, based on the company’s forecast of $5.30 to $6.80 per share.
Revenue for the quarter fell to $3.48 billion from $5.07 billion in the year-ago period.
Meanwhile, the Street had forecast revenue of $3.42 billion, based on a company forecast of $3.1 billion to $3.7 billion.
The company said it expects fiscal second-quarter earnings of $6.03 to $7.53 a share on revenue of $3.4 billion to $4 billion.
Analysts had estimated second-quarter earnings of $6.77 a share on expected revenue of $3.65 billion.
“Lam continues to deliver strong results despite a cyclically soft year for wafer fabrication equipment spending,” said Tim Archer, Lam Research’ chief executive, in a statement. “There are tremendous growth vectors ahead for Lam, and we are investing strategically to drive long-term outperformance.”
Lam makes the very complicated clean-room machinery used by foundries like Taiwan Semiconductor Manufacturing Co. TSM,
While the U.S. government widened a ban on sales of artificial-intelligence technology to China on Tuesday, analysts were doubtful the new rules would hurt Lam in a material way.
Earlier Wednesday, Netherlands-based ASML Holding NV ASML,
ASML shares closed down more than 4% Wednesday.
Year to date, Lam Research shares have surged 52.8%, compared with a 34.8% rally in the PHLX Semiconductor Index SOX,