Semiconductor manufacturing equipment maker KLA Corporation (NASDAQ:KLAC) will be reporting results tomorrow after market close. Here’s what to expect.
KLA Corporation beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $2.57 billion, up 9.1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA and EPS 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 15.1% year on year to $2.76 billion, a reversal from the 12% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $7.05 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. KLA Corporation has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3% on average.
Looking at KLA Corporation’s peers in the semiconductor manufacturing segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Teradyne delivered year-on-year revenue growth of 4.8%, beating analysts’ expectations by 3%, and Lam Research reported revenues up 19.7%, topping estimates by 2.7%. Teradyne traded down 11.1% following the results while Lam Research was up 4.8%.
Read our full analysis of Teradyne’s results here and Lam Research’s results here.
Investors in the semiconductor manufacturing segment have had steady hands going into earnings, with share prices flat over the last month. KLA Corporation is down 12.8% during the same time and is heading into earnings with an average analyst price target of $826.12 (compared to the current share price of $674.99).
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