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KLA-Tencor (KLAC) to Post Q2 Earnings: What's in the Cards?
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KLA-Tencor Corporation (KLAC - Free Report) is set to report second-quarter fiscal 2021 results on Feb 3. It delivered an earnings surprise of 10.2% in the last reported quarter.
The company topped the Zacks Consensus Estimate in the trailing four quarters, with an average of 8.9%.
Fiscal Second-Quarter Forecasts
For the fiscal second quarter, KLA-Tencor expects revenues in the range of $1.510-$1.660 billion. The Zacks Consensus Estimate for revenues is currently pegged at $1.59 billion, indicating growth of 5.5% from the year-ago quarter.
Non-GAAP earnings are expected in the range of $2.82-$3.46 per share. The Zacks Consensus Estimate for earnings is currently pegged at $3.16 per share, indicating an increase of 18.8% from the year-ago quarter.
KLA-Tencor reported fiscal first-quarter 2020 non-GAAP earnings of $3.03 per share, which beat the Zacks Consensus Estimate of $2.75.
Revenues increased 8.9% from the year-ago quarter and 5.4% sequentially to $1.54 billion, surpassing the Zacks Consensus Estimate by 3.9%.
Factors to Note
KLA-Tencor’s robust product portfolio has been catering to increasing demand for wafer products. Also, it has been witnessing strong demand in Semiconductor Process Control systems.
The company is expected to have witnessed increased Semiconductor device demand for enterprise and cloud applications due to work-from-home surge and a strengthening gaming market.
Foundry and logic remained strong in the last reported quarter. The momentum is expected to have continued in the to-be-reported quarter driven by next-generation technology development, capacity additions at leading-edge nodes, increasing competitive dynamics and investment in EUV infrastructure.
In addition, business from memory customers is expected to have remained strong in the quarter to be reported, with the momentum expected to continue throughout 2021.
Overall process control intensity is expected to have increased in the quarter, driven by expanding value of inspection and measurement in addressing critical customer problems.
In addition, its Gen5 optical inspection platform has been gaining momentum. Increased deployment of Gen5 for both technology development and production monitoring at advanced nodes by customers is expected to have positively impacted top-line growth in the quarter. Increasing demand for mask inspection should have helped it contribute to revenue growth in the to-be-reported quarter.
The company’s efforts in bringing the EUV lithography technology to the market have been gaining momentum. These efforts, along with the expanding value of inspection and measurement in addressing critical customer problems, are expected to have driven KLA-Tencor’s performance in the to-be-reported quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for KLA-Tencor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, KLA-Tencor has a Zacks Rank #3.
Stocks That Warrant a Look
Here are a few stocks worth considering, as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
Microchip Technology Incorporated (MCHP - Free Report) has an Earnings ESP of +1.14% and a Zacks Rank #2.
Facebook has an Earnings ESP of +0.88% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
KLA-Tencor (KLAC) to Post Q2 Earnings: What's in the Cards?
KLA-Tencor Corporation (KLAC - Free Report) is set to report second-quarter fiscal 2021 results on Feb 3. It delivered an earnings surprise of 10.2% in the last reported quarter.
The company topped the Zacks Consensus Estimate in the trailing four quarters, with an average of 8.9%.
Fiscal Second-Quarter Forecasts
For the fiscal second quarter, KLA-Tencor expects revenues in the range of $1.510-$1.660 billion. The Zacks Consensus Estimate for revenues is currently pegged at $1.59 billion, indicating growth of 5.5% from the year-ago quarter.
Non-GAAP earnings are expected in the range of $2.82-$3.46 per share. The Zacks Consensus Estimate for earnings is currently pegged at $3.16 per share, indicating an increase of 18.8% from the year-ago quarter.
KLA Corporation Price and EPS Surprise
KLA Corporation price-eps-surprise | KLA Corporation Quote
Performance in the Last Reported Quarter
KLA-Tencor reported fiscal first-quarter 2020 non-GAAP earnings of $3.03 per share, which beat the Zacks Consensus Estimate of $2.75.
Revenues increased 8.9% from the year-ago quarter and 5.4% sequentially to $1.54 billion, surpassing the Zacks Consensus Estimate by 3.9%.
Factors to Note
KLA-Tencor’s robust product portfolio has been catering to increasing demand for wafer products. Also, it has been witnessing strong demand in Semiconductor Process Control systems.
The company is expected to have witnessed increased Semiconductor device demand for enterprise and cloud applications due to work-from-home surge and a strengthening gaming market.
Foundry and logic remained strong in the last reported quarter. The momentum is expected to have continued in the to-be-reported quarter driven by next-generation technology development, capacity additions at leading-edge nodes, increasing competitive dynamics and investment in EUV infrastructure.
In addition, business from memory customers is expected to have remained strong in the quarter to be reported, with the momentum expected to continue throughout 2021.
Overall process control intensity is expected to have increased in the quarter, driven by expanding value of inspection and measurement in addressing critical customer problems.
In addition, its Gen5 optical inspection platform has been gaining momentum. Increased deployment of Gen5 for both technology development and production monitoring at advanced nodes by customers is expected to have positively impacted top-line growth in the quarter. Increasing demand for mask inspection should have helped it contribute to revenue growth in the to-be-reported quarter.
The company’s efforts in bringing the EUV lithography technology to the market have been gaining momentum. These efforts, along with the expanding value of inspection and measurement in addressing critical customer problems, are expected to have driven KLA-Tencor’s performance in the to-be-reported quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for KLA-Tencor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, KLA-Tencor has a Zacks Rank #3.
Stocks That Warrant a Look
Here are a few stocks worth considering, as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
Microchip Technology Incorporated (MCHP - Free Report) has an Earnings ESP of +1.14% and a Zacks Rank #2.
Thermo Fisher Scientific Inc. (TMO - Free Report) has an Earnings ESP of +5.52% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Facebook has an Earnings ESP of +0.88% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>