Semiconductor manufacturing equipment maker KLA Corporation (NASDAQ: KLAC) will be reporting earnings this Wednesday afternoon. Here’s what to expect.
KLA Corporation beat analysts’ revenue expectations last quarter, reporting revenues of $3.30 billion, up 7.2% year on year. It was a strong quarter for the company, with a decent beat of analysts’ adjusted operating income estimates and revenue guidance for next quarter topping analysts’ expectations.
Is KLA Corporation a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting KLA Corporation’s revenue to grow 10.2% year on year, slowing from the 29.8% increase it recorded in the same quarter last year.
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.
Looking at KLA Corporation’s peers in the semiconductors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Lam Research delivered year-on-year revenue growth of 23.8%, beating analysts’ expectations by 1.7%, and Amkor reported revenues up 27.5%, topping estimates by 1.7%. Lam Research traded down 2.6% following the results.
Read our full analysis of Lam Research’s results here and Amkor’s results here.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 46.9% on average over the last month. KLA Corporation is up 37.5% during the same time and is heading into earnings with an average analyst price target of $1,709 (compared to the current share price of $1,901).
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