What to Expect When Lam Research (LRCX) Reports Fiscal Third Quarter Earnings This Afternoon

NEW YORK (TheStreet) -- Shares of Lam Research were gaining 1.4% to $71.68 Monday ahead of the chipmaker's fiscal third quarter earnings report after the market close. Analysts expect Lam Research to report earnings of $1.30 a share and revenue of $1.37 billion for the fiscal third quarter that ended in March 2015. For the fiscal second quarter Lam Research reported earnings of $1.19 a share, beating the $1.13 a share analysts surveyed by Thomson Reuters expected. The company reported revenue of $1.232 billion for the second quarter, compared to analysts' estimates of $1.233 billion. Lam Research reported earnings of $1.26 a share for the quarter that ended in March 2014, above analysts' estimates of $1.13 a share. The company reported revenue of $1.23 billion in the year-ago quarter, compared to analysts' estimates of $1.22 billion. TheStreet Ratings team rates LAM RESEARCH CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation: "We rate LAM RESEARCH CORP (LRCX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results." Highlights from the analysis by TheStreet Ratings Team goes as follows: LRCX's revenue growth has slightly outpaced the industry average of 1.2%. Since the same quarter one year prior, revenues rose by 10.4%. Growth in the company's revenue appears to have helped boost the earnings per share. LRCX's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, LRCX has a quick ratio of 2.24, which demonstrates the ability of the company to cover short-term liquidity needs. Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 37.76% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LRCX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year. LAM RESEARCH CORP has improved earnings per share by 14.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LAM RESEARCH CORP increased its bottom line by earning $3.68 versus $0.67 in the prior year. This year, the market expects an improvement in earnings ($4.80 versus $3.68). The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Semiconductors & Semiconductor Equipment industry average. The net income increased by 18.8% when compared to the same quarter one year prior, going from $148.99 million to $176.94 million. You can view the full analysis from the report here: LRCX Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015

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