What To Expect From KLA Corporation’s (KLAC) Q1 Earnings

Jabin Bastian /
2022/10/25 2:59 am EDT

Maker of equipment for semiconductor manufacturing, KLA Corporation (NASDAQ:KLAC) will be announcing earnings results tomorrow after market hours. Here's what you need to know.

Last quarter KLA Corporation reported revenues of $2.48 billion, up 29.1% year on year, beating analyst revenue expectations by 2.7%. It was a very strong quarter for the company, with a significant improvement in operating margin and a beat on the bottom line.

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This quarter analysts are expecting KLA Corporation's revenue to grow 24.5% year on year to $2.59 billion, slowing down from the 35.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $6.23 per share.

KLA Corporation Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing three downward revisions over the last thirty days. 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 2.66%.

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 investors in the segment have had steady hands going into the earnings, with the stocks up on average 0.64% over the last month. KLA Corporation is down 2.91% during the same time, and is heading into the earnings with analyst price target of $361.56, compared to share price of $294.72.

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.