Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. KLA (KLAC) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.KLA is a member of the Computer and Technology sector. This group includes 607 in ...

点击招商研究小程序查看PDF报告原文 事件： 科磊（NASDAQ:KLAC）近日发布FY25Q3（即CY25Q1）财报，公司25Q1营收30.6亿美元，同 比+29.8%/环比-0.4%；毛利率63%，同比+3.2pcts/环比+1.7pct。综合财报及交流会议信息， 总结要点如下： 评论： 1、25Q1营收高于指引中值，毛利率位于指引上限。 公司25Q1营收30.6亿美元，同比+29.8%/环比-0.4%，超指引中值，主要系先进逻辑制程和HBM 投资增加驱动；毛利率为63%，同比+3.2pcts/环比+1.7pct，位于指引上限，主要系质量控制部 门产品组合优于预期。 2、存储设备收入环比高增，中国大陆地区营收占比大幅下滑。 1）分部门： 25Q1半导体质量控制收入27.39亿美元，同比+31%/环比-1%，占比89%；特色工 艺营收1.56亿美元，同比+20%/环比-2%，占比5%；PCB及组件检测收入1.68亿美元，同比 +26%/环比+5%，占比6%； 2）分产品： 晶圆检测收入14.96亿美元，同比+51%/环比-4%， 占比49%；服务业务收入6.69亿美元，同比+13%/环比+0.3%，占比22 ...

Company Overview - KLA Corporation has experienced a positive growth trajectory in 2025, driven by significant investments in leading-edge wafer equipment (WFE) markets [3]. - The company has observed a shift from legacy investments, particularly in China, to a strong growth profile associated with the 2-nanometer node, which has positively impacted the logic segment [3]. Industry Dynamics - The overall spending environment in the semiconductor industry is characterized by increased investments in high-performance computing and high bandwidth memory, which are key drivers for KLA's business [4]. - The current trends indicate a robust demand for advanced semiconductor technologies, reflecting a broader industry shift towards cutting-edge applications [3][4].

KLA (KLAC) FY Conference Summary Industry Overview - The conference focused on the wafer equipment (WFE) market, particularly in the semiconductor industry, highlighting KLA's position and growth prospects within this sector [1][3][10]. Key Points and Arguments Growth Drivers - KLA reported a strong growth profile driven by investments in leading-edge technology, particularly in the two-nanometer node and high-performance computing [3][4]. - The WFE market is expected to grow in the mid-single digits, while KLA's service business is projected to grow by approximately 10% [5][7]. - The company has seen a shift towards advanced packaging, which is becoming a significant growth opportunity, particularly due to high-performance computing demands [4][6][19]. Financial Performance - KLA's process control systems revenues have outperformed the WFE market, growing at a 13% CAGR compared to the WFE market's 11% CAGR [10][11]. - The gross margin model is approximately 62.5%, with operating margins targeted between 40-50% [7][8]. - KLA's share of the WFE market has increased from low sixes to nearly 8% [19]. Market Dynamics - The semiconductor industry is experiencing a structural growth in WFE intensity, which is expected to continue due to rising demand and complexity in manufacturing processes [12][13]. - The introduction of EUV technology has revitalized scaling in the industry, leading to increased demand for KLA's process control solutions [14][15]. Future Outlook - KLA anticipates continued growth in 2025, driven by advanced foundry logic, DRAM, and advanced packaging [20][21]. - The company is optimistic about the sustainability of its growth trajectory into 2026, contingent on macroeconomic factors and demand in mobile and PC markets [27][28]. Trade and Tariff Considerations - KLA has assessed a potential tariff impact of approximately 100 basis points but remains confident in its ability to manage this risk through operational adjustments and a robust service business model [30][34]. Technological Advancements - KLA is leveraging AI and GPU-based architectures in its systems to enhance performance and efficiency, particularly in defect detection and process control [40][41][64]. - The company is investing in EUV inspection capabilities to meet future market demands as feature sizes shrink [48][49]. Additional Important Insights - KLA has gained significant market share in the electron beam inspection market, doubling its revenues and increasing its share by 700 basis points [54][55]. - The advanced packaging market has expanded significantly, with KLA's revenues in this segment projected to grow from $500 million to $850 million, reflecting a 70% increase [66][70]. - The company is well-positioned to capitalize on the shift from traditional wafer processing to advanced packaging solutions, which presents new market opportunities [73][74]. This summary encapsulates the key insights and projections discussed during the KLA FY Conference, highlighting the company's strategic positioning and growth potential within the semiconductor industry.

Group 1 - KLA (KLAC) has surpassed resistance at the 200-day moving average, indicating a long-term bullish trend [1] - The stock has increased by 13.5% over the last four weeks, suggesting potential for further gains [2] - There have been 10 positive earnings estimate revisions for KLAC, with no downward revisions, strengthening the bullish outlook [2][3] Group 2 - KLAC is currently rated as a Zacks Rank 2 (Buy), reflecting positive market sentiment [2] - The combination of technical indicators and earnings estimate revisions positions KLAC as a stock to watch for potential gains [3]

Core Insights - KLA's international operations are crucial for understanding its financial resilience and growth potential, especially given the interconnected global economy [2][3] Revenue Performance - KLA's total revenue for the quarter reached $3.06 billion, marking a 29.8% year-over-year increase [4] - Revenue contributions from various international markets show significant trends, with notable surprises in several regions [3] International Revenue Breakdown - Rest of Asia generated $100.44 million, representing 3.28% of total revenue, with an 11.6% surprise compared to projections [5] - Korea contributed $378.55 million, or 12.36% of total revenue, but fell short of the $420.01 million estimate by 9.87% [6] - Taiwan's revenue was $988.47 million, accounting for 32.27%, exceeding expectations by 9.83% [7] - Japan's contribution was $338.65 million, or 11.06%, surpassing the $300 million forecast by 12.88% [8] - China generated $792.88 million, constituting 25.89% of total revenue, but was 11.9% below the $900.01 million estimate [9] - Europe & Israel contributed $170.06 million, making up 5.55% of total revenue, with a significant surprise of 41.71% over the $120 million estimate [10] Future Revenue Expectations - Analysts predict KLA's total revenue for the current fiscal quarter to be $3.07 billion, a 19.5% increase from the prior year [11] - Expected revenue shares from various regions include Rest of Asia (3.9%), Korea (13.8%), Taiwan (27.5%), Japan (9.8%), China (29.5%), and Europe & Israel (3.9%) [12] - For the entire year, total revenue is forecasted at $12.04 billion, reflecting a 22.7% improvement from the previous year [13] Strategic Considerations - KLA's reliance on international markets presents both opportunities and challenges, necessitating close monitoring of revenue trends to forecast future prospects [14] - The impact of global interconnections and geopolitical factors on earnings predictions is significant for companies with overseas operations [15]

Core Viewpoint - The technology sector has significantly increased share buyback activities, with S&P 500 tech companies spending $253 billion on buybacks in 2024, representing nearly 27% of total buyback spending across all sectors [1]. Group 1: Company Buyback Announcements - KLA announced a $5 billion increase to its share buyback authorization, bringing its total buyback capacity to just under $5.5 billion, which is nearly 6% of its market capitalization [4]. - Dell Technologies revealed a $10 billion increase to its share repurchase authorization, which is approximately 15% of its $66 billion market cap [6][7]. - Alphabet announced a substantial $70 billion share buyback program, which represents about 3.5% of its market cap of around $2 trillion [10][11]. Group 2: Dividend Increases - KLA increased its quarterly dividend by almost 12%, with an indicated yield of around 1.1% [5]. - Dell Technologies announced an 18% increase to its quarterly dividend, now just under $0.53 per share, yielding around 2.2% [8]. - Alphabet's dividend increase was modest at 5%, with a quarterly dividend of $0.21, resulting in a yield of just over 0.5% [12]. Group 3: Market Sentiment and Analyst Ratings - KLA is recognized as a leader in chip inspection and metrology equipment, with a MarketRank of 93rd percentile and a moderate buy rating [3]. - Dell Technologies holds a MarketRank of 100th percentile, indicating strong market sentiment with a projected earnings growth of 17.75% [7]. - Alphabet has a MarketRank of 80th percentile, with a moderate buy rating and projected earnings growth of 14.94% [11].

Group 1 - KLA (KLAC) has reached a key level of support and recently broke out above the 50-day moving average, indicating a short-term bullish trend [1] - KLAC has moved 21.1% higher over the last four weeks and is currently rated as a Zacks Rank 2 (Buy) stock [2] - There have been 10 positive earnings estimate revisions for KLAC compared to none lower for the current fiscal year, with the consensus estimate also moving up [2][3] Group 2 - The combination of positive earnings estimate revisions and favorable technical indicators suggests that KLAC may experience further gains in the near future [3]

Core Viewpoint - KLA (KLAC) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. KLA's Earnings Outlook - For the fiscal year ending June 2025, KLA is expected to earn $32.04 per share, reflecting a 35% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for KLA has risen by 2.1%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - KLA's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Revenue and Growth - The company reported that services revenue accounted for approximately 23% of total revenues, driven by an increase in the installed base of KLA systems [161]. - Total revenues for the three months ended March 31, 2025, were $3,063.0 million, a 30% increase from $2,359.8 million in the same period of 2024 [191]. - Product revenues for the three months ended March 31, 2025, were $2,393.8 million, a 35% increase from $1,769.4 million in the same period of 2024 [191]. - Service revenues for the three months ended March 31, 2025, increased to $669.2 million, up 13% from $590.5 million in the same period of 2024 [193]. - Total revenues for the nine months ended March 31, 2025, reached $8,981.4 million, a 24% increase from $7,243.5 million in the same period of 2024 [191]. - Revenue from customers in China accounted for 34% of total revenues for the nine months ended March 31, 2025, and 26% for the three months ended March 31, 2025 [194]. - The company experienced a significant revenue increase in Taiwan, with revenues rising 128% to $988.5 million for the three months ended March 31, 2025 [192]. - Total revenues for reportable segments increased by $703.8 million, or 30%, for the three months ended March 31, 2025, compared to the same period in 2024, reaching $3,063,869 thousand [195]. Financial Performance - Gross margin improved to 61.6% for the three months ended March 31, 2025, compared to 57.9% in the same period of 2024 [191]. - Net income for the three months ended March 31, 2025, was $1,088.4 million, up from $601.5 million in the same period of 2024, reflecting a significant increase of 81% [1]. - Diluted net income per share increased to $8.16 for the three months ended March 31, 2025, compared to $4.43 in the same period of 2024 [1]. - Gross profit in the Semiconductor Process Control segment increased by $421.7 million, or 31%, for the three months ended March 31, 2025, compared to the same period in 2024 [202]. - Gross profit in the PCB and Component Inspection segment increased by 102% for the nine months ended March 31, 2025, compared to the same period in 2024 [202]. Expenses and Charges - R&D expenses for the three months ended March 31, 2025, increased by $16.5 million, or 5%, compared to the same period in 2024, totaling $338,043 thousand [204]. - SG&A expenses for the three months ended March 31, 2025, increased by $11.4 million (5%) to $248.9 million compared to $237.5 million in the same period of 2024 [208]. - SG&A expenses for the nine months ended March 31, 2025, rose by $52.6 million (7%) to $767.0 million compared to $714.4 million in the same period of 2024 [209]. - A goodwill and purchased intangible assets impairment charge of $239.1 million was recorded in the PCB and Component Inspection segment during the second quarter of fiscal 2025 [210]. - The company recorded a goodwill impairment charge of $230.4 million in the PCB and Component Inspection segment during the second quarter of fiscal 2025 [182]. Government Regulations and Market Conditions - The U.S. government has imposed export licensing requirements on certain semiconductor technologies for customers in China, impacting the company's ability to provide products and services [166]. - The 2023 BIS Rules, effective November 2023, update export controls on advanced computing semiconductors and manufacturing equipment, further complicating compliance for the company [170]. - The company is continuously assessing the impact of government regulations and tariffs on financial results, particularly concerning operations in China [174]. - The recent imposition of tariffs by the U.S. government is expected to adversely impact the company's results of operations, with ongoing uncertainty regarding their duration and extent [173]. - Recent improvements in the semiconductor environment are attributed to rising semiconductor content across end-markets and strategic investments in legacy nodes [164]. Cash Flow and Capital Management - Cash, cash equivalents, and marketable securities totaled $4.03 billion as of March 31, 2025, a decrease of $475.4 million from June 30, 2024, primarily due to stock repurchases and debt repayment [226]. - Net cash provided by operating activities was $2.92 billion for the nine months ended March 31, 2025, compared to $2.42 billion in the same period of 2024 [224]. - Net cash provided by operating activities increased to $2.92 billion for the nine months ended March 31, 2025, up from $2.42 billion in the same period of 2024, reflecting a $501 million increase primarily due to higher customer collections [230]. - Net cash used in investing activities improved to $122.9 million for the nine months ended March 31, 2025, compared to a cash outflow of $(1.34) billion in the prior year, driven by a $1.48 billion increase in net proceeds from the sale of available-for-sale securities [231]. - Net cash used in financing activities rose to $3.16 billion for the nine months ended March 31, 2025, compared to $1.16 billion in the same period of 2024, largely due to a $750 million increase in debt repayment and $458.8 million in common stock repurchases [232]. Investments and Credit - As of March 31, 2025, the company had $5.95 billion in senior unsecured notes, with compliance to all covenants under the Indenture [233]. - The company has an unsecured Revolving Credit Facility of up to $1.50 billion, with no outstanding borrowings as of March 31, 2025, and a leverage ratio of 1.08 to 1.00 [234]. - The company maintains a credit rating of A from Fitch Inc. and S&P Global Ratings, and A2 from Moody's Investors Service as of March 31, 2025 [240]. - The company intends to indefinitely reinvest $65.9 million of cash held by foreign subsidiaries, with $999.3 million of total cash held abroad [227]. - As of March 31, 2025, the company had an investment portfolio of fixed income securities valued at $2.02 billion, subject to interest rate risk [243]. Sustainability Initiatives - The company entered into a long-term virtual power purchase agreement in January 2025 to support its goal of 100% renewable electricity by 2030 [241].