KLA Corporation Earnings: What To Look For From KLAC

Radek Strnad /
2022/07/27 4:48 am EDT
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Maker of equipment for semiconductor manufacturing, KLA Corporation (NASDAQ:KLAC) will be announcing earnings results tomorrow afternoon. Here's what to expect.

Last quarter KLA Corporation reported revenues of $2.28 billion, up 26.8% year on year, beating analyst revenue expectations by 3.84%. It was a decent quarter for the company, with a beat on the bottom line but an increase in inventory levels.

Is KLA Corporation buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting KLA Corporation's revenue to grow 25.7% year on year to $2.42 billion, slowing down from the 31.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.49 per share.

KLA Corporation Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.68%.

With KLA Corporation being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for semiconductors stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 3.56% over the last month. KLA Corporation is up 2.11% during the same time, and is heading into the earnings with analyst price target of $400.8, compared to share price of $347.19.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.