Investors might want to bet on KLA (KLAC) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power of a changing earni ...

For the quarter ended September 2024, KLA (KLAC) reported revenue of $2.84 billion, up 18.6% over the same period last year. EPS came in at $7.33, compared to $5.74 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $2.76 billion, representing a surprise of +3.11%. The company delivered an EPS surprise of +4.27%, with the consensus EPS estimate being $7.03. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...

KLA (KLAC) came out with quarterly earnings of $7.33 per share, beating the Zacks Consensus Estimate of $7.03 per share. This compares to earnings of $5.74 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 4.27%. A quarter ago, it was expected that this maker of equipment for manufacturing semiconductors would post earnings of $6.08 per share when it actually produced earnings of $6.60, delivering a surprise of 8.55%. Over the l ...

Financial Performance - Q1 Fiscal Year 2025 - Revenue reached $2.84 billion[7] - Gross margin was 61.2%[7] - Operating margin was 41.5%[7] - Net income totaled $988 million[7] - Non-GAAP diluted EPS was $7.33[7] - GAAP diluted EPS was $7.01[7] Revenue Breakdown - Semiconductor Process Control (Systems + Services) accounted for 90% of revenue, totaling $2.575 billion, with a year-over-year growth of 21% and a quarter-over-quarter growth of 12%[9] - Specialty Semiconductor Process (Systems + Services) contributed $129 million, representing 5% of revenue, with a year-over-year growth of 1% and a quarter-over-quarter growth of 6%[9] - PCB and Component Inspection (Systems + Services) generated $138 million, accounting for 5% of revenue, with a year-over-year growth of 1% and a quarter-over-quarter decrease of 1%[9] - Wafer Inspection accounted for 48% of revenue, totaling $1.369 billion, with a year-over-year growth of 36% and a quarter-over-quarter growth of 17%[12] Balance Sheet - Total cash was $4.63 billion[14] - Bonds outstanding amounted to $6.70 billion[15] - Working capital was $5.43 billion[17] - Total assets were $15.682 billion[20] - Total shareholders' equity was $3.56 billion[24] Capital Returns and Free Cash Flow - September quarter free cash flow was $935 million, with a free cash flow margin of 33% and a free cash flow conversion of 95%[32] - Share buybacks for the September quarter were $567 million, with $1.848 billion in LTM share buybacks[33] - Dividends paid in the September quarter were $198 million, with $790 million in LTM dividends paid[33] Guidance for Q2 Fiscal Year 2025 - Revenue is expected to be $2.95 billion, with a variance of plus or minus $150 million[34] - Non-GAAP gross margin is projected to be 61.5%, with a variance of plus or minus 1%[34] - Non-GAAP diluted EPS is expected to be $7.75, with a variance of plus or minus $0.60[34]

Revenue and Growth - Total revenues for Q1 FY 2025 were $2.84 billion, above the midpoint of the guidance range of $2.75 billion +/- $150 million[1] - Q1 FY 2025 total revenues increased to $2.84 billion from $2.40 billion in Q1 FY 2024, representing an 18.5% year-over-year growth[4] - Q2 FY 2025 guidance expects total revenues to be in the range of $2.95 billion +/- $150 million[5] - Total revenues for Q3 2024 reached $2.84 billion, up 18.5% from $2.40 billion in Q3 2023[15] - Semiconductor Process Control revenue for Q3 2024 was $2.58 billion, up 20.6% from $2.14 billion in Q3 2023[15] Earnings and Profitability - GAAP diluted EPS was $7.01 and non-GAAP diluted EPS was $7.33, both near the upper end of the respective guidance ranges[1] - GAAP net income for Q1 FY 2025 was $945.9 million, with GAAP net income per diluted share of $7.01[2] - Net income for Q1 FY 2025 was $945.9 million, compared to $741.4 million in Q1 FY 2024, representing a 27.6% year-over-year increase[11] - Net income for Q3 2024 increased to $945.85 million, up 27.6% from $741.38 million in Q3 2023[13] - Non-GAAP net income for Q3 2024 was $988.15 million, up 25.7% from $786.48 million in Q3 2023[16] - Non-GAAP net income per diluted share for Q3 2024 was $7.33, up 27.7% from $5.74 in Q3 2023[16] - GAAP diluted EPS for Q2 FY 2025 is expected to be in the range of $7.45 +/- $0.60, and non-GAAP diluted EPS is expected to be $7.75 +/- $0.60[5] Cash Flow and Liquidity - Cash flow from operating activities for the quarter was $995.2 million, and free cash flow was $934.8 million[1] - Free cash flow for Q3 2024 was $934.85 million, up 14.6% from $815.70 million in Q3 2023[18] - Net cash provided by operating activities for Q3 2024 was $995.24 million, up 12.6% from $883.74 million in Q3 2023[13] - Cash and cash equivalents as of September 30, 2024, were $1.98 billion, with total current assets of $10.23 billion[10] Capital Returns and Stock Repurchases - Capital returns for Q3 2024 totaled $765.46 million, up 20.2% from $636.92 million in Q3 2023[19] - Common stock repurchases for Q3 2024 totaled $567.38 million, up 24.6% from $455.41 million in Q3 2023[13] Gross Margin and Profitability Projections - GAAP gross margin for Q2 FY 2025 is expected to be in the range of 60.0% +/- 1.0%, while non-GAAP gross margin is expected to be 61.5% +/- 1.0%[5] - GAAP gross margin for Q3 2024 is projected to be between 59.0% and 61.0%, with non-GAAP gross margin expected to be between 60.5% and 62.5%[21] Non-GAAP Financial Metrics and Adjustments - Non-GAAP financial metrics are used to enhance understanding of operating performance and future prospects, including non-GAAP net income, non-GAAP net income per diluted share, non-GAAP gross margin, and free cash flow[22] - Acquisition-related charges in non-GAAP adjustments include amortization of intangible assets, transaction costs, and intangible asset impairment charges[23] - Restructuring, severance, and other charges in non-GAAP adjustments include employee severance costs and writedowns of certain right of use assets and fixed assets[23] - Income tax effect of non-GAAP adjustments includes the tax effects of excluded items[23] - Discrete tax items in non-GAAP adjustments include tax impacts from changes in international structure and amortization of tax items[23]

Total revenues were $2.84 billion, above the midpoint of the guidance range of $2.75 billion +/- $150 million; GAAP diluted EPS was $7.01 and non-GAAP diluted EPS was $7.33, both of which were near the upper end of the respective guidance ranges; Cash flow from operating activities for the quarter and last twelve months were $995.2 million and $3.42 billion, respectively, and free cash flow was $934.8 million and $3.15 billion, respectively; and Capital returns for the quarter and last twelve months were $7 ...

Wall Street expects a year-over-year increase in earnings on higher revenues when KLA (KLAC) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 30. On th ...

The company is in the middle of a political storm concerning sales of high-performance chips and equipment across the Pacific Ocean. News of a top-level effort to curb the activities of certain makers of high-tech components was putting the hurt on KLA (KLAC -1.81%) stock recently. Spooked by the apparent determination to limit such businesses' interaction with a top Asian peer, investors eagerly traded out of KLA. As a result, according to data compiled by S&P Global Market Intelligence, the company's shar ...

KLA (KLAC) shares have outperformed the Zacks Computer & Technology sector as well as its peers Applied Materials (AMAT) and Lam Research (LRCX) over the past year. While KLA's shares have returned 42.4%, Applied Materials and Lam Research gained 30.5% and 15.4%, respectively, over the past year. The broader sector has appreciated 40.5% over the same time frame. The uptick can be attributed to the robust performance of the wafer inspection segment, fueled by increasing demand for advanced wafer inspection a ...

New portfolio drives chip performance with panel-based interconnect innovation KLA is extending the capability of the proven Corus™ direct imaging platform and introducing the Serena™ direct imaging platform to support mainstream and advanced IC substrate lithography requirements New Lumina™ inspection and metrology systems further equip IC substrate (including glass core) and panel-based interposer makers to efficiently build advanced products with high quality and yield MILPITAS, Calif., Oct. 15, 2024 /PR ...