Earnings Outlook: Concerns out of Asia have this tech sector in rare focus this earnings season

Chip-equipment companies have benefited from the continuing memory boom, but recent developments in Asia have investors questioning the near-term outlook for companies like Lam Research Corp., KLA-Tencor Corp., and Applied Materials Inc.

Shares of Lam LRCX, -0.83% and its peers in the typically sleepy sector got slammed in early June on word of production delays at Samsung Electronics Co. Ltd. 005930, +0.22% and the stocks have yet to recover. The concern is that Samsung is moving in a slower-than-expected manner with production of some of its chips, which means it’s also delaying equipment purchases.

Wall Street will be paying close attention to the earnings reports and associated commentary from the chip-equipment companies to get a better indication of whether the so-called push-outs at Samsung are indeed viewed to be temporary, and if so, when executives predict that things will get better.

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