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Earnings Results: Lam Research stock slips as supply-chain issues keep hampering production

Lam Research Corp. shares slid in late trading Wednesday after the semiconductor-making-equipment supplier said supply-chain issues that have snarled the output of manufacturers worldwide over multiple quarters continue to hold it back from satisfying strong customer demand.

Lam Research
LRCX,
+0.47%

shares fell more than 3% after hours, following a 0.5% gain to close the regular session at $481.45.

“In an extraordinarily difficult supply environment, Lam reported March-quarter results within guided ranges,” Lam Research Chief Executive Tim Archer said in a statement. “We are focused on resolving our supply issues as quickly as possible to support strong customer demand. We remain confident in the secular drivers of wafer fabrication equipment investment as well as Lam’s leadership position and expect to return to solid growth as industry constraints ease.”

Meanwhile, U.S. shares of ASML Holding NV
ASML,
+2.72%

had closed 2.7% higher Wednesday despite an earnings miss after the chip-equipment supplier’s CEO Peter Wennink told analysts the company was “running at maximum capacity” and that it expected “demand to exceed supply well into next year.”

Read: The end of one-chip wonders: Why Nvidia, Intel and AMD’s valuations have experienced massive upheaval

Lam Research reported third-quarter net income of $1.02 billion, or $7.30 a share, compared with $1.07 billion, or $7.41 a share, in the year-ago period. Adjusted earnings, which exclude amortization and other items, were $7.40 a share, compared with $7.49 a share in the year-ago period.

Revenue rose to $4.06 billion from $3.85 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast adjusted earnings of $7.52 a share on revenue of $4.25 billion, based on Lam’s forecast of $6.70 to $8.20 a share on sales of $3.95 billion to $4.55 billion.

Lam forecast fiscal fourth-quarter adjusted earnings of $6.50 to $8 a share on sales of $3.9 billion to $4.5 billion. Analysts on average were projecting earnings of $8.23 a share on revenue of $4.45 billion, according to FactSet.

Last quarter, Lam Research had also said its lower-than-expected results and outlook were due to supply-chain conditions that had worsened in late December.

Lam Research shares have fallen more than 21% over the past 12 months, compared with a 0.7% advance in the PHLX Semiconductor Index 
SOX,
-0.35%
,
 a 7.9% rise by the S&P 500 index
SPX,
-0.06%
,
 and a 2.4% decline in the tech-heavy Nasdaq Composite Index 
COMP,
-1.22%
.

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