KLA Corporation Set to Reveal Q2 Earnings Amid Strong Market Performance
Analysts Anticipate Significant Earnings Growth for Q2
KLA Corporation (KLAC), established in 1975 and based in Milpitas, California, is a top provider of process control and yield management solutions for the semiconductor and electronics sectors. With an impressive market cap of $87.9 billion, KLAC supplies advanced inspection, metrology, and analytics products that assist manufacturers in enhancing production efficiency and quality. The company is poised to release its Q2 earnings on Thursday, Jan. 23.
Expected Earnings Surge Highlights Company’s Trajectory
Leading up to this announcement, analysts forecast KLAC will report a profit of $7.73 per share, reflecting a robust increase of 25.5% compared to $6.16 per share in the same quarter last year. KLAC has established a commendable history of exceeding Wall Street’s earnings expectations, achieving this success in its last four quarterly reports.
Recent Financial Performance Showcases Continued Strength
In Q1, KLAC posted an EPS of $7.33, surpassing consensus estimates by 4.3%. This strong performance was fueled by a rising demand for semiconductor equipment, which also contributed to significant year-over-year growth in both earnings and revenue.
For fiscal 2025, analysts anticipate KLAC will report an EPS of $30.37, marking an increase of 27.9% from the $23.74 in fiscal 2024.
Stock Performance Reflects Broader Market Trends
Over the past year, shares of KLA Corporation have climbed 18.9%, falling short of the S&P 500 Index’s ($SPX) 26.3% rise and the 27.1% rally of the Technology Select Sector SPDR Fund (XLK).
KLA Corporation gained over 3% on Dec. 2, adding to the surge in chip stocks that uplifted the broader market. However, following its Q1 earnings release on Oct. 30, shares fell by 3.7%. The report included a revenue figure of $2.84 billion, an 18.5% year-over-year growth that surpassed analysts’ expectations by 3%.
Notably, KLA preserved a GAAP gross margin of 59.6%, reduced inventory days from 273 to 247, and achieved a free cash flow margin of 32.9%, slightly under prior year levels. Furthermore, the company set a Q4 revenue guidance at $2.95 billion, which exceeded forecasts.
Analysts Maintain Positive Outlook on KLAC Stock
The consensus among analysts regarding KLAC stock is largely positive, as reflected in a “Moderate Buy” rating overall. Out of 26 analysts watching the stock, 14 advocate for a “Strong Buy,” one suggests a “Moderate Buy,” and 11 recommend a “Hold” rating.
Currently, the average analyst price target for KLAC stands at $805.83, indicating a potential upward movement of 22.7% from existing levels.
On the date of publication,
Rashmi Kumari
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
