$LRCX delivered strong growth, but the upside versus consensus was much smaller than the growth rate suggests.
September-quarter revenue reached $8.219B, up 22% sequentially, versus roughly $8.14B expected.
Non-GAAP EPS was $2.20 versus $2.17 consensus, according to EarningsWhispers.
That’s a small consensus beat. It was below the separate $2.28 whisper estimate, which is not the same thing as Wall Street consensus.
December guidance calls for $8.6B revenue, plus or minus $400M, versus about $8.5B consensus cited by EarningsWhispers. The midpoint implies another 4.6% of sequential growth, not a contraction.
Profitability remains strong: non-GAAP gross margin was 52.4% and operating margin 40.2%. December guidance midpoints are 52.5% and 40.5%, respectively.
CEO Tim Archer says: “Our strategic investments in technology inflections and manufacturing capacity are paying off”.
My read: this is strong business performance without a huge upside reset to expectations. That can help explain why a beat doesn’t automatically produce a positive stock reaction, but it doesn’t prove the cause of the selloff. Management’s call still matters.
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