Semiconductor manufacturing equipment maker KLA Corporation (NASDAQ: KLAC) will be announcing earnings results this Wednesday after the bell. Here’s what to look for.
KLA Corporation beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $3.17 billion, up 23.6% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and an impressive 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 for active Edge members.
This quarter, analysts are expecting KLA Corporation’s revenue to grow 11.8% year on year to $3.18 billion, slowing from the 18.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $8.62 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 a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.3% on average.
Looking at KLA Corporation’s peers in the semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Amkor delivered year-on-year revenue growth of 6.7%, beating analysts’ expectations by 2.6%, and Lam Research reported revenues up 27.7%, topping estimates by 1.6%. Lam Research traded up 4.3% following the results.
Read our full analysis of Amkor’s results here and Lam Research’s results here.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 9.4% on average over the last month. KLA Corporation is up 14.6% during the same time and is heading into earnings with an average analyst price target of $1,051 (compared to the current share price of $1,219).
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