Shares of Lam Research (NASDAQ: LRCX) climbed 1.5% in after-hours trading Wednesday after the company reported better-than-expected earnings and revenue for the second quarter.

Lam posted Q2 adjusted earnings per share (EPS) of $7.14, beating the consensus projection of $7.07. The company generated $3.76 billion in revenue during the quarter, compared with the estimated $3.7 billion.

Systems revenue stood at $2.3 billion, down 35% year-over-year (YoY) and topping the estimated $2.23 billion. Customer support-related and other revenue stood at $1.46 billion, down 16% YoY, and in line with what analysts expected.

The wafer-fabrication equipment supplier reported a Q2 adjusted gross margin of 47.6%, compared with 45.1% in the year-ago period and the 47.1% expected by analysts. Adjusted operating margin stood at 30%, down from 32.1% in the same quarter last year, but above the consensus estimates of 29.6%.

Going forward, Lam Research expects Q3 EPS to be in the range of $6.15 to $7.65, compared with Wall Street estimates of $6.64. Third-quarter revenue is anticipated to land between $3.4 billion and $4 billion, while analysts were looking for $3.68 billion.

"Lam delivered solid results to close out 2023," said Tim Archer, Lam Research's President and Chief Executive Officer.

"With our investments in extending product differentiation and building a flexible and efficient global infrastructure, we are in a strong position to benefit as innovations such as AI power robust semiconductor industry growth in the years to come."

By Vahid Karaahmetovic