LR

Lam Research Corporation stock research

Sep 24, 2023

FY2024 Q1

Lam Research (LRCX) Gross Margin — Quarter Ended Sep 24, 2023

Revenue and gross profit were higher than the prior quarter but lower than the same quarter one year earlier. Cost of revenue followed a similar pattern, and gross margin improved compared to both periods.

Gross margin takeaway

Quarter ended Sep 24, 2023 · FY2024 Q1

Revenue and gross profit were higher than the prior quarter but lower than the same quarter one year earlier. Cost of revenue followed a similar pattern, and gross margin improved compared to both periods.

  • Compared to the prior quarter, revenue increased more than cost of revenue, driving a higher gross profit and margin. Versus the year-ago quarter, both revenue and cost of revenue declined, but cost declined at a faster rate, resulting in an improved gross margin.
  • Gross margin improved sequentially and year-over-year, with the current quarter's margin higher than both the prior quarter and the same quarter last year.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

47.5%

Gross profit

$1.7B

Revenue

$3.5B

Cost of revenue

$1.8B

Quarter-over-quarter change

+2.1 pts

Year-over-year change

+1.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 26, 2023$3.9B$1.6B$2.3B41.5%
Jun 25, 2023$3.2B$1.5B$1.7B45.5%
Sep 24, 2023$3.5B$1.7B$1.8B47.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 25, 2023

+2.1 pts

Year-over-year change

Sep 25, 2022

+1.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Compared to the prior quarter, revenue increased more than cost of revenue, driving a higher gross profit and margin. Versus the year-ago quarter, both revenue and cost of revenue declined, but cost declined at a faster rate, resulting in an improved gross margin.

Gross margin improved sequentially and year-over-year, with the current quarter's margin higher than both the prior quarter and the same quarter last year.

Monitor restructuring charges included in cost of goods sold, as they appeared in the current quarter but were absent in the year-ago period.