Why Is KLA (KLAC) Up 4.7% Since Last Earnings Report?

Core Insights - KLA's Q4 fiscal 2024 non-GAAP earnings were $6.60 per share, exceeding estimates by 8.55% and reflecting a 25.5% year-over-year increase [2] - Revenues for the same quarter reached $2.57 billion, surpassing estimates by 2.57% and showing a 9.1% year-over-year growth [2] Revenue Breakdown - Semiconductor Process Control revenues, which constitute 89.8% of total revenues, increased by 10% year-over-year to $2.31 billion [3] - Specialty Semiconductor Process revenues accounted for 4.7% of total revenues, totaling $121.3 million, down 6% year-over-year [4] - PCB, Display, and Component Inspection revenues rose 8.6% year-over-year to $140 million, representing 5.5% of total revenues [4] Product and Service Performance - Product revenues, making up 76.1% of total revenues, increased by 7.6% year-over-year to $1.96 billion, while service revenues rose 14% year-over-year to $613.9 million [5] - Wafer Inspection revenues increased 23% year-over-year to $1.17 billion, while Patterning revenues declined 7% year-over-year to $542 million [6] Operating Metrics - The non-GAAP gross margin for Q4 was 62.5%, exceeding guidance by 10 basis points [7] - Non-GAAP operating margin improved to 41%, up 50 basis points sequentially [8] Financial Position - As of June 30, 2024, KLA had cash, cash equivalents, and marketable securities totaling $4.5 billion, an increase from $4.3 billion in the previous quarter [9] - Long-term debt decreased to $5.88 billion from $6.7 billion in the prior quarter [9] Shareholder Returns - KLA paid out $197.5 million in dividends and repurchased $470.3 million worth of shares during the fiscal fourth quarter [10] Future Guidance - For Q1 fiscal 2025, KLA expects revenues of $2.75 billion, with non-GAAP earnings projected at $7 per share [11] - The company anticipates a non-GAAP gross margin of 61.5% and operating expenses between $559 million and $571 million [11] Market Sentiment - There has been a 9.07% upward shift in consensus estimates over the past month, indicating positive market sentiment [12] - KLA holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [14]