Over the last four quarters, the company has surpassed consensus EPS estimates four times. KLA shares have added about 38.9% since the beginning of the year versus the S&P 500's gain of 16.5%. Ahead of this earnings release, the estimate revisions trend for KLA: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform ...

2 Includes $3B Accelerated Share Repurchase (ASR) 3 Excludes $16.50 per share special dividend in CY15 KLA Non-Confidential | Unrestricted 10 $832M June Quarter Free Cash Flow* 32% June Quarter FCF Margin* September 2024 Quarter Guidance $198M June Quarter Dividends Paid (Above) The 8935 high productivity patterned wafer inspection system detects a wide variety of critical defects that affect the yield and reliability of semiconductor chips. Provides high throughput, inline defect detection and binning, hel ...

Financial Performance - KLA reported Q4 FY2024 GAAP net income of $836.4 million and diluted EPS of $6.18 on total revenues of $2.57 billion[1] - For the full fiscal year 2024, KLA achieved GAAP net income of $2.76 billion and diluted EPS of $20.28 on total revenues of $9.81 billion[1] - Q4 FY2024 non-GAAP net income was $893 million, with non-GAAP diluted EPS of $6.60[3] - Full year FY2024 non-GAAP net income reached $3.23 billion, with non-GAAP diluted EPS of $23.74[5] - Total revenues for the quarter were $2.569 billion, at the upper end of the guidance range of $2.5 billion +/- $125 million[36] - GAAP diluted EPS for the quarter was $6.18, and non-GAAP diluted EPS was $6.60, both above the midpoints of their respective guidance ranges[24] - Total revenues for the fiscal year were $9.81 billion, down 6.5% year-over-year[17] - Net income for the three months ended June 30, 2024, was $836.4 million, up from $684.7 million in the same period in 2023[41] Revenue Breakdown - Q4 FY2024 product revenues were $1.95 billion, while service revenues were $613.9 million[8] - Full year FY2024 product revenues totaled $7.48 billion, and service revenues were $2.33 billion[8] - Semiconductor Process Control segment revenues for the quarter were $2.31 billion, up 10% year-over-year[17] - Specialty Semiconductor Process segment revenues for the quarter were $121.3 million, down 6% year-over-year[17] - PCB and Component Inspection segment revenues for the quarter were $140.0 million, up 9% year-over-year[17] Expenses and Margins - Q4 FY2024 R&D expenses were $325.8 million, representing 12.7% of total revenues[8] - Full year FY2024 R&D expenses were $1.28 billion, accounting for 13.0% of total revenues[8] - Q4 FY2024 pre-tax GAAP to non-GAAP adjustments totaled $76.5 million, primarily from acquisition-related charges and restructuring costs[14] - KLA's Q4 FY2024 operating margin was 38.1% on a GAAP basis and 40.5% on a non-GAAP basis[8] - GAAP gross margin for the quarter was 59.9%, and non-GAAP gross margin was 61.5%[23] Cash Flow and Capital Returns - Cash flow from operating activities for the quarter was $892.6 million, and free cash flow was $831.9 million[24] - Capital returns for the quarter were $667.8 million, including $197.5 million in dividends and $470.3 million in stock repurchases[27] - Net cash provided by operating activities for the three months ended June 30, 2024, was $892.6 million, compared to $959.1 million in the same period in 2023[39] - Free cash flow for the three months ended June 30, 2024, was $831.9 million, down from $880.4 million in the same period in 2023[39] - Capital expenditures for the three months ended June 30, 2024, were $60.7 million, compared to $78.7 million in the same period in 2023[41] Balance Sheet and Equity - Cash and cash equivalents at the end of June 30, 2024, were $1.98 billion, up from $1.93 billion at the end of June 30, 2023[43] - Total current assets as of June 30, 2024, were $10.03 billion, compared to $8.37 billion as of June 30, 2023[43] - Total liabilities as of June 30, 2024, were $12.07 billion, up from $11.15 billion as of June 30, 2023[43] - Stockholders' equity as of June 30, 2024, was $3.37 billion, compared to $2.92 billion as of June 30, 2023[43] Future Guidance - For the first quarter of fiscal 2025, total revenues are expected to be in the range of $2.75 billion +/- $150 million[23]

For the quarter, total revenues were $2.569 billion, at the upper end of the guidance range of $2.5 billion +/- $125 million; For the quarter, GAAP diluted EPS attributable to KLA was $6.18 and non-GAAP diluted EPS attributable to KLA was $6.60, each finishing above the midpoints of the respective guidance ranges; Cash flow from operating activities for the quarter and fiscal year was $892.6 million and $3.31 billion, respectively, and free cash flow was $831.9 million and $3.03 billion, respectively; and C ...

Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Has KLA (KLAC) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out. KLA is a member of the Computer and Technology sector. This group includes 617 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of th ...

KLA Corp. Operations I believe the build-out of regional Al factories will drive demand for more advanced nodes as competition for speed and power consumption becomes more frece. Many of the hyperscalers, including Microsoft Azure (MSFT) and Amazon AWS (AMZN) are designing their own accelerators in order to provide more tailored services in relation to data consumption and power efficiency. Despite the drive to bring Al to the edge on smartphones and PCs, I do not anticipate as much eapacity to be catered t ...

About KLA: All earnings disclosures as well as the live earnings webcast will be available on the Investor Relations page of KLA's website at ir.kla.com. A replay of the webcast will be posted after the event. KLA Corporation ("KLA") develops industry-leading equipment and services that enable innovation throughout the electronics industry. We provide advanced process control and process-enabling solutions for manufacturing wafers and reticles, integrated circuits, packaging and printed circuit boards. In c ...

Company Performance - KLA's stock closed at $830.03, reflecting a +0.27% change from the previous day, outperforming the S&P 500's gain of 0.23% [1] - Over the past month, KLA shares have increased by 8.96%, while the Computer and Technology sector has decreased by 2.01% [3] - The upcoming earnings disclosure is anticipated, with projected earnings per share (EPS) of $6.08, indicating a 12.59% increase year-over-year, and revenue forecasted at $2.5 billion, representing a 6.34% growth [4] Analyst Estimates - The consensus EPS projection for KLA has remained stagnant over the past 30 days, with a current Zacks Rank of 3 (Hold) [2] - Changes in analyst estimates are crucial as they reflect the evolving business landscape, with positive adjustments indicating a favorable outlook on the company's health and profitability [5] Valuation Metrics - KLA's Forward P/E ratio stands at 35.53, significantly higher than the industry average of 21.6, suggesting that KLA is trading at a premium [6] - The PEG ratio for KLA is 3.96, compared to the industry average of 2.73, indicating a higher valuation relative to expected earnings growth [6] Industry Context - KLA operates within the Electronics - Miscellaneous Products industry, which is part of the Computer and Technology sector, currently ranked 175 in the Zacks Industry Rank, placing it in the bottom 31% of all industries [7] - For the full year, analysts expect KLA to report earnings of $23.30 per share and revenue of $9.75 billion, reflecting declines of -8.16% and -7.13% from the previous year [8]

KLA Corporation Conference Call Summary Company Overview - KLA Corporation operates in the semiconductor industry, focusing on advanced packaging, electronics, and components [6][5] - The company reported a revenue of $9.7 billion in 2023, experiencing an 8% decline compared to the previous year, but expects stabilization and potential growth in the current year [6][6] Key Industry Insights - The semiconductor industry is undergoing significant changes driven by diversification, particularly due to the rise of AI, GPU, and high-bandwidth memory (HBM) technologies [9][11] - The demand for semiconductor capital equipment is projected to grow faster than GDP over the next five to ten years, fueled by the increasing integration of semiconductors in daily life [10][14] Advanced Packaging Focus - KLA has invested heavily in advanced packaging over the past four years, acquiring companies like ICOS, Orbotech, and SPTS to enhance its capabilities in this area [5][6] - Advanced packaging is critical for integrating multiple functions from different wafers into a single package, which is essential for meeting the performance and power requirements of modern devices [21][19] Technology and Market Drivers - The transition from traditional semiconductor manufacturing to advanced packaging techniques, such as heterogeneous integration and chiplets, is becoming increasingly important [20][22] - KLA is focusing on developing customized solutions for packaging, including inspection and metrology tools tailored for the unique challenges of packaging technology [27][29] Revenue Projections and Growth Opportunities - KLA anticipates a significant increase in packaging revenue, projecting it to reach between $450 million and $500 million in 2024, nearly doubling from previous figures [33][33] - The company sees substantial growth potential in the substrate market, which is expected to become a key growth engine in the near future [25][29] Data Analytics and Process Improvement - KLA is leveraging its expertise in data analytics to enhance packaging processes, aiming to create a feedback loop that improves efficiency and effectiveness in packaging operations [31][32] - The company is developing data analytical software and algorithms to capitalize on the unique challenges presented by packaging, which is not standardized like front-end semiconductor processes [32][32] Conclusion - KLA Corporation is strategically positioned in the semiconductor industry, focusing on advanced packaging as a key growth area driven by AI and other technological advancements [14][33] - The company's investments in acquisitions and technology development are expected to yield significant returns as the demand for sophisticated semiconductor solutions continues to rise [5][33]

Core Insights - KLA Corporation aims for a topline growth target of 9% to 11%, with expectations to reach $14 billion in sales and $38 in earnings by 2026 [1][34][26] - The company anticipates a mid-double-digit growth rate over the next couple of years, driven by increased investment in logic and foundry sectors [4][10] - KLA's service business is projected to grow at 12% to 14% through the cycle, supported by a high attach rate of over 90% for service contracts [3][7] Company Performance - KLA's systems business is expected to grow close to 10%, while the service business has shown resilience with mid-high single-digit growth despite lower utilization rates in the industry [3][7][9] - The company has a predictable service revenue stream, with about 75% of revenue coming from subscription-like contracts [3][8] - Gross margins are projected to be around 63%, with operating margins expected to exceed 42% as the company approaches its revenue targets [26][40] Market Dynamics - The wafer fab equipment (WFE) market is expected to see a recovery, with leading-edge investments driving demand, particularly in the context of AI and advanced packaging [19][20][66] - KLA's position in process control is significantly stronger than competitors, with a market share approximately five to six times larger than the nearest rival [35][64] - The company is preparing for growth in leading-edge investments, which require higher process control intensity compared to legacy investments [19][24][62] Future Outlook - KLA anticipates a favorable environment for DRAM and memory markets, with expectations of improved financial performance and supply-demand parity [32][74] - The company is focused on maintaining a strong supply chain to meet future demand, with lead times for products generally around nine months [57][72] - Advanced packaging is identified as a growth area, with KLA participating in various process steps that are expected to grow faster than overall WFE [66][69]