Credit Suisse First Boston reiterates its buy rating on Lam Research (LRCX), but lowers earnings estimates for fiscal 2002.
The manufacturer of plasma-etch systems used to make integrated circuits reported first-quarter earnings per share of $0.21 compared with $0.15, excluding charges and the impact of options revaluation. The company posted the rise in EPS despite a 7% decline in revenues.
Analyst John Pitzer cut his fiscal 2002 estimate to a $0.11 loss on $975 million in revenues, compared with EPS of $0.20 and sales of $1.02 billion. He set an EPS estimate of $0.05 for fiscal year 2003 on $825 million in revenues. Pitzer says that while he would underweight the group, Lam continues to offer the best risk/reward ratio than others. He notes the company's proven management team, stronger balance sheet, better peak margin potential and ability to gain significant share in etch systems.