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KLA Corp. (KLAC) Q3 Earnings Beat, Revenues Increase Y/Y

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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.

KLA Corporation Price, Consensus and EPS Surprise

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.

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