Don't Overlook Lam Research (LRCX) International Revenue Trends While Assessing the Stock

Have you evaluated the performance of Lam Research's (LRCX) international operations during the quarter that concluded in September 2024? Considering the extensive worldwide presence of this semiconductor equipment maker, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.Upon examining LRCX's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.The recent quarter saw the company's total revenue reaching $4.17 billion, marking an improvement of 19.7% from the prior-year quarter. Next, we'll examine the breakdown of LRCX's revenue from abroad to comprehend the significance of its international presence. Unveiling Trends in LRCX's International RevenuesOf the total revenue, $1.56 billion came from China during the last fiscal quarter, accounting for 37.4%. This represented a surprise of -9.18% as analysts had expected the region to contribute $1.72 billion to the total revenue. In comparison, the region contributed $1.51 billion, or 38.9%, and $1.69 billion, or 48.5%, to total revenue in the previous and year-ago quarters, respectively.Southeast Asia generated $244.79 million in revenues for the company in the last quarter, constituting 5.9% of the total. This represented a surprise of +12.71% compared to the $217.19 million projected by Wall Street analysts. Comparatively, in the previous quarter, Southeast Asia accounted for $298.99 million (7.7%), and in the year-ago quarter, it contributed $159.1 million (4.6%) to the total revenue.Taiwan accounted for 14.8% of the company's total revenue during the quarter, translating to $615.37 million. Revenues from this region represented a surprise of +37.9%, with Wall Street analysts collectively expecting $446.24 million. When compared to the preceding quarter and the same quarter in the previous year, Taiwan contributed $594.49 million (15.4%) and $242.49 million (7%) to the total revenue, respectively.During the quarter, Korea contributed $762.08 million in revenue, making up 18.3% of the total revenue. When compared to the consensus estimate of $777.7 million, this meant a surprise of -2.01%. Looking back, Korea contributed $697.31 million, or 18%, in the previous quarter, and $547.95 million, or 15.7%, in the same quarter of the previous year.Japan accounted for 7.2% of the company's total revenue during the quarter, translating to $301.39 million. Revenues from this region represented a surprise of -23.51%, with Wall Street analysts collectively expecting $394.04 million. When compared to the preceding quarter and the same quarter in the previous year, Japan contributed $282.73 million (7.3%) and $324.52 million (9.3%) to the total revenue, respectively.Europe generated $197.57 million in revenues for the company in the last quarter, constituting 4.7% of the total. This represented a surprise of +1.68% compared to the $194.31 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $115.4 million (3%), and in the year-ago quarter, it contributed $238.47 million (6.9%) to the total revenue. Revenue Projections for Overseas Markets For the current fiscal quarter, it is anticipated by Wall Street analysts that Lam Research will report a total revenue of $4.31 billion, which reflects an increase of 14.6% from the same quarter in the previous year. The revenue contributions are expected to be 39.8% from China ($1.71 billion), 5.4% from Southeast Asia ($233.28 million), 11.7% from Taiwan ($504.7 million), 19.5% from Korea ($841.87 million), 9.6% from Japan ($412.44 million) and 4.2% from Europe ($179.77 million).For the full year, the company is expected to generate $17.28 billion in total revenue, up 15.9% from the previous year. Revenues from China, Southeast Asia, Taiwan, Korea, Japan and Europe are expected to constitute 41% ($7.08 billion), 5.8% ($995.05 million), 11.7% ($2.03 billion), 19.6% ($3.39 billion), 9.3% ($1.6 billion) and 4.3% ($741.97 million) of the total, respectively. Wrapping Up Lam Research's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.Lam Research, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Reviewing Lam Research's Recent Stock Price Trends The stock has declined by 7.6% over the past month compared to the 1.7% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes Lam Research, has increased 1.9% during this time frame. Over the past three months, the company's shares have experienced a loss of 2.1% relative to the S&P 500's 7% increase. Throughout this period, the sector overall has witnessed a 6.7% increase.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lam Research Corporation (LRCX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks