Semiconductor manufacturing equipment maker KLA Corporation (NASDAQ:KLAC) will be announcing earnings results tomorrow after market hours. Here’s what to expect.
KLA Corporation beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $2.84 billion, up 18.5% year on year. It was a very strong quarter for the company, with a significant improvement in its inventory levels and a solid beat of analysts’ adjusted operating income estimates.
Is KLA Corporation a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting KLA Corporation’s revenue to grow 18.4% year on year to $2.94 billion, a reversal from the 16.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $7.76 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. KLA Corporation has missed Wall Street’s revenue estimates three times over the last two years.
Looking at KLA Corporation’s peers in the semiconductors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Texas Instruments’s revenues decreased 1.7% year on year, beating analysts’ expectations by 3.3%, and Qorvo reported a revenue decline of 14.7%, topping estimates by 1.4%. Texas Instruments traded down 7.5% following the results.
Read our full analysis of Texas Instruments’s results here and Qorvo’s results here.
Investors in the semiconductors segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. KLA Corporation is up 15.1% during the same time and is heading into earnings with an average analyst price target of $787.27 (compared to the current share price of $731.06).
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