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KLA Corporation (KLAC - Free Report) reported third-quarter fiscal 2021 earnings of $3.85, which beat the Zacks Consensus Estimate by 7.2% and surged 56% year over year.
Revenues increased 26.7% year over year to $1.80 billion, surpassing the Zacks Consensus Estimate by 3.6%.
Products revenues (accounting for 76.2% of total revenues) increased 30.8% year over year to $1.38 billion.
Services revenues (23.8% of total revenues) increased 14.9% from the year-ago quarter to $428.5 million.
Quarter Details
In terms of reportable segments, Semiconductor Process Control revenues increased 28% year over year to $1.51 billion.
Specialty Semiconductor Process revenues were $91.7 million, up 7.8% year over year.
PCB, Display and component inspection revenues jumped 28% year over year to $205.2 million.
Selling, General and Administrative (SG&A) expenses were $239 million, reflecting an 11% year-over-year increase. As a percentage of revenues, SG&A expenses decreased 190 basis points (bps) year over year to 13.2%.
Research and development (R&D) expenses were $183 million, down 1.5% year over year. As a percentage of revenues, R&D expenses decreased 290 bps year over year to 10.1%.
Balance Sheet
As of Mar 31, 2021, KLA had cash, cash equivalents and current marketable securities of $2.44 billion compared with $2.3 billion as of Dec 31, 2020.
Cash from operations was $646.2 million for the fiscal third quarter versus $561.1 million in the previous quarter.
During the quarter, the company paid $139.6 million in dividends and repurchased $273 million shares.
Guidance
For fourth-quarter fiscal 2021, revenues are expected between $1.755 million and $1.955 million.
KLA expects non-GAAP gross margin in the range of 61-63%.
Moreover, KLA expects earnings between $3.47 and $4.35 per share.
CDW is set to report its quarterly earnings on May 5. Both Cognex and EPAM are scheduled to report the same on May 6.
5 Stocks Set to Double
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KLA Corp. (KLAC) Q3 Earnings Beat, Revenues Increase Y/Y
KLA Corporation (KLAC - Free Report) reported third-quarter fiscal 2021 earnings of $3.85, which beat the Zacks Consensus Estimate by 7.2% and surged 56% year over year.
Revenues increased 26.7% year over year to $1.80 billion, surpassing the Zacks Consensus Estimate by 3.6%.
Products revenues (accounting for 76.2% of total revenues) increased 30.8% year over year to $1.38 billion.
Services revenues (23.8% of total revenues) increased 14.9% from the year-ago quarter to $428.5 million.
Quarter Details
In terms of reportable segments, Semiconductor Process Control revenues increased 28% year over year to $1.51 billion.
KLA Corporation Price, Consensus and EPS Surprise
KLA Corporation price-consensus-eps-surprise-chart | KLA Corporation Quote
Specialty Semiconductor Process revenues were $91.7 million, up 7.8% year over year.
PCB, Display and component inspection revenues jumped 28% year over year to $205.2 million.
Selling, General and Administrative (SG&A) expenses were $239 million, reflecting an 11% year-over-year increase. As a percentage of revenues, SG&A expenses decreased 190 basis points (bps) year over year to 13.2%.
Research and development (R&D) expenses were $183 million, down 1.5% year over year. As a percentage of revenues, R&D expenses decreased 290 bps year over year to 10.1%.
Balance Sheet
As of Mar 31, 2021, KLA had cash, cash equivalents and current marketable securities of $2.44 billion compared with $2.3 billion as of Dec 31, 2020.
Cash from operations was $646.2 million for the fiscal third quarter versus $561.1 million in the previous quarter.
During the quarter, the company paid $139.6 million in dividends and repurchased $273 million shares.
Guidance
For fourth-quarter fiscal 2021, revenues are expected between $1.755 million and $1.955 million.
KLA expects non-GAAP gross margin in the range of 61-63%.
Moreover, KLA expects earnings between $3.47 and $4.35 per share.
Zacks Rank & Stocks to Consider
KLA currently has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector are CDW Corporation (CDW - Free Report) , Cognex (CGNX - Free Report) and EPAM Systems (EPAM - Free Report) . All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CDW is set to report its quarterly earnings on May 5. Both Cognex and EPAM are scheduled to report the same on May 6.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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