Earnings Analysis for LRCX (Last 3 Fiscal Years)
Revenue Analysis:
Total and Operating Revenue: Across the provided periods, operating revenue for LRCX showed growth from approximately $3.21 billion in Q1 2023 to about $3.79 billion by Q1 2024. This consistent increase demonstrates growth in core business activities.
Gross Profit Margins: Gross profit also saw an upward trend, from $1.46 billion in Q1 2023 to $1.80 billion in Q1 2024, aligning with increasing revenues, indicating efficient management in production or service delivery processes.
Cost Management:
Cost of Revenue: The cost of revenue expanded in tune with revenue, moving from $2.26 billion in Q1 2023 to $1.99 billion by Q1 2024. A slight reduction in cost relative to revenue indicates improved cost efficiency.
Operating Expense: Operating expenses ranged from around $629 million in Q3 2023 to $728 million in Q1 2024, indicating controlled growth in operational spending relative to revenue.
Total Expenses: Fluctuations in total expenses essentially mirrored operational revenue changes, ensuring that the profitability metrics remained favorable.
Profitability Analysis:
EBITDA: EBITDA grew from nearly $999 million in Q2 2023 to approximately $1.23 billion in Q1 2024, reflecting stronger earnings before interest, taxes, depreciation, and amortization, key indicators of operational profitability.
Operating Income: Operating income has improved significantly, from about $856 million in Q2 2023 to over $1.07 billion in Q1 2024, indicative of robust operational management.
Pretax Income and Net Income: Pretax income increased from $864 million in Q2 2023 to approximately $1.09 billion in Q1 2024. Correspondingly, net income also saw growth from $803 million to about $966 million, underscoring effective tax management and operational efficiency.
Cash Flow Indicators:
Reconciled Depreciation: Reconciled depreciation figures are indicative of the investment in capital assets and ranged from $89 million to $91 million during the observed quarters, aligning with industry norms of asset replacement and upgrade cycles.
Interest Expense: Interest expense demonstrated a manageable level, showing minor fluctuations which suggest stable finance cost management.
Taxation:
Tax Rate and Tax Provision: The tax rate has varied slightly across the quarters, affecting the overall tax provision which also saw corresponding adjustments – a reflection of changing tax obligations based on pre-tax incomes and fiscal regulations.
Tax Effect of Unusual Items: Unusual items had various impacts on the tax calculations, indicating one-off events that temporarily skewed the tax figures.
Shareholder Metrics:
Diluted and Basic EPS: Earnings per share (both diluted and basic) consistently increased over the periods, a positive signal to existing and potential investors about the profitability per share.
Average Shares and Net Income Available to Common Stockholders: The average shares remained relatively stable, indicating no significant dilution, while net income available to common stockholders increased, benefiting the shareholders.
Conclusion:
LRCX has demonstrated robust revenue growth, improved profitability, controlled cost management, and stable cash flow indicators over the observed periods. These financial fundamentals suggest a strong operational stance and represent an attractive profile for sustained investment.