Thomson Reuters I/B/E/S Estimates

Earnings Valuation Report

LAM RESEARCH CORP (LRCX) Report as of 05/02/19

Historical EPS Consensus Expectations Fiscal year ends Jun.

Annual

$25
FY '21

$20

$15 FY '19 FY '20

FY '18

$10 FY '17

FY '22
$5

$0
Quarterly

$5
Q4 '18

$4
Q4 '19
Q1 '19 Q2 '19
Q3 '19

$3 Q2 '20
Q1 '20
Q2 '18

$2

$1

$0 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
2017 2018 2019

EPS Expectation Actual Earnings Announcement ( Negative Surprise, Positive Surprise )

Stock Price and Recommendation History

$220

$200

$180

$160

$140

Buy
$120
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
2017 2018 2019

Consensus Recommendation History

Strong Buy
1.0 - 1.5
Buy
1.6 - 2.5
Hold
2.6 - 3.5
Underperform
3.6 - 4.5
Sell
4.6 - 5.0
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
2017
©2019 Thomson Reuters I/B/E/S Estimates 2018 Prepared on 5/7/19 using data as of 05/02/19,
2019Page 1 of 4
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Earnings Valuation Report
LAM RESEARCH CORP continued

Stock Price Expected Annual Growth Rates PEG Ratio

Price as of 05/02 $206.84 Five year estimate A Way To Value Growth
Less More
Dividend Yield 2.13% Expensive Expensive

Beta 1.5 LRCX 37.1% LRCX 4.16

Industry
Semiconductor Equipment & Testing Industry NA Industry NA
Sector Technology Sector NA Sector NA
Fiscal Year Ends June Market 14.4% Market 4.91

LRCX's next earnings announcement is For comparison purposes, LRCX's The PEG Ratio is the P/E Ratio divided by
expected on July 24th. average growth rate during the last 5 the expected 1 year growth rate. The
years was -0.1% per year. higher the PEG ratio, the more expensive
the stock.

Quarterly EPS Consensus Expectations Quarterly EPS Trend

Q4 '19 Q1 '20 Q2 '20 Q3 '20
$5.50
Mean as of 05/02/19 $3.42 $3.25 $3.40 $3.75
Previous Mean $3.25 $3.15 $3.49 $3.69 $5.25

# of Brokers 19 19 19 19 $5.00
Range (low/high) $3.31/3.60 $2.69/3.81 $2.85/4.03 $3.22/4.54
$4.75
Stnd. Deviation $0.06 $0.25 $0.31 $0.32
$4.50
Announce Date 07/24 10/14
Same Qtr. Last Yr. $5.31 A $3.36 A $3.87 A $3.70 A $4.25

$4.00

$3.36 A
Change Over Same Quarter Last Year

$3.40
$3.75
Calendar Year June Sept Dec Mar

$3.25
$5.31 A

$3.87 A

$3.70 A
$3.50
Lam Research Corp -35.6% -3.4% -12.1% 1.3%

$3.42

$3.75
Industry NA NA NA NA $3.25

Sector NA NA NA NA $3.00 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Market 1.2% 1.0% 8.2% 10.7% '18 '19 '20

Annual EPS Consensus Expectations Annual EPS Trend

FY '19 FY '20 FY '21
$18
Mean as of 05/02/19 $14.38 $14.82 $17.88
Previous Mean $13.87 $14.81 $17.80
# of Brokers 21 21 12 $16

Range (low/high) $14.24/14.68 $13.04/17.54 $15.90/21.24

Stnd. Deviation $0.10 $1.34 $1.65 $14

Announce Date 07/24

Year Ago EPS $17.87 A $12

Change Over Previous Year $10

Calendar Year '19 '20 '21
$6.37 A

$17.87 A
$9.98 A

$14.38

$14.82

$17.88

Lam Research Corp -19.5% 3.0% 20.7% $8

Industry NA NA NA
Sector NA NA NA $6 '16 '17 '18 '19 '20 '21
Market 3.6% 11.2% 9.5%

©2019 Thomson Reuters I/B/E/S Estimates Prepared on 5/7/19, Page 2 of 4

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Earnings Valuation Report
LAM RESEARCH CORP continued

Historical P/E

18x

16xTFQ

14x

12x

10x

FFQ
8x

6x Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19
NovDec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
2016 2017 2018 2019

FFQ is Price divided by Forward Four Quarters EPS estimate, TFQ is Price divided by Trailing Four Quarters actual EPS. Lines do not
appear for any week where the P/E is not meaningful.

Current P/E Current Recommendation

LAM RESEARCH CORP Industry Market Opinion Analysts with Opinion

Strong Buy 4

Buy - 2.0 10

Hold 4

Underperform
17.9x
17.5x

16.1x
15.0x

Trailing 277.0x
14.4x

14.0x
12.7x

Trailing NA

Forward NA

2019 NA

2020 NA

Sell
Trailing

Forward

Forward
2019

2020

2019

2020

Analysts Included in Consensus 18

Current Distribution of Current Distribution of

Estimates for This Year (FY '19) Estimates for This Quarter (Q4 '19)

$15.00 $3.50

$14.50
$3.45

$14.00
$3.40

$13.50

$3.35
$13.00

$12.50 $3.30
Jan Feb Mar Apr 4/24 4/29 5/6

Analysts revising upwards, Analysts revising downwards, and initial estimates.

©2019 Thomson Reuters I/B/E/S Estimates Prepared on 5/7/19, Page 3 of 4

 Thomson Reuters I/B/E/S Estimates
Earnings Valuation Report
LAM RESEARCH CORP
Earnings Notes and Announcements
Fy12 2018 On 04/24/2019, the company
announced Quarterly EPS guidance
between 3.200 and 3.600 (P/S). The TR
analysts forecasts mean at
announcement was 3.663 (P/S).
Fy12 2018 On 04/24/2019, the company
announced Quarterly GPS guidance
between 3.110 and 3.510 (P/S). The TR
analysts forecasts mean at
announcement was 3.500 (P/S).
Fy12 2018 On 04/24/2019, the company
announced Quarterly SAL guidance
between 2200.000 and 2500.000
(millions). The TR analysts forecasts
mean at announcement was 2494.706
(millions).
Fy12 2018 On 04/24/2019, the company
Footnotes
JUN18 Estimates reflect adoption of
FAS123(R)
JUN17 Estimates reflect adoption of
FAS123(R)
JUN16 Estimates reflect adoption of
FAS123(R)
JUN15 Estimates reflect adoption of
FAS123(R)
©2019 Thomson Reuters I/B/E/S Estimates
announced Quarterly GRM guidance
between 44.500 and 46.500 (%). The TR
analysts forecasts mean at
announcement was 46.009 (%).
Fy3 2019 On 01/23/2019, the company
announced Quarterly EPS guidance
between 3.200 and 3.600 (P/S). The TR
analysts forecasts mean at
announcement was 3.337 (P/S).
Fy3 2019 On 01/23/2019, the company
announced Quarterly GPS guidance
between 3.010 and 3.410 (P/S). The TR
analysts forecasts mean at
announcement was 3.312 (P/S).
Fy3 2019 On 01/23/2019, the company
announced Quarterly GRM guidance
between 43.500 and 45.500 (%). The TR
continued
analysts forecasts mean at
announcement was 45.715 (%).
Fy3 2019 On 01/23/2019, the company
announced Quarterly SAL guidance
between 2250.000 and 2550.000
(millions). The TR analysts forecasts
mean at announcement was 2417.970
(millions).
Fy12 2018 On 10/16/2018, the company
announced Quarterly SAL guidance
between 2350.000 and 2650.000
(millions). The TR analysts forecasts
mean at announcement was 2416.326
(millions).
Prepared on 5/7/19, Page 4 of 4