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KLA Corp. (KLAC) to Report Q4 Earnings: What's in Store?

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KLA Corporation (KLAC - Free Report) is scheduled to report fiscal fourth-quarter 2021 results on Jul 29.

For the fiscal fourth quarter, the company expects revenues between $1.755 billion and $1.955 billion. The Zacks Consensus Estimate for sales is pegged at $1.87 billion, indicating growth of 28.2% from the year-ago reported value.

Further, it anticipates non-GAAP earnings per share in the range of $3.47-$4.35 for fiscal fourth-quarter 2021. The consensus mark for earnings per share is pegged at $3.94, indicating a 44.32% rise from the previous-year reported figure.

It surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 8.9%.

KLA Corporation Price and EPS Surprise

KLA Corporation Price and EPS Surprise

KLA Corporation price-eps-surprise | KLA Corporation Quote

Key Factors to Note

Solid momentum in wafer fabrication equipment is expected to have aided KLA Corp.’s fiscal fourth-quarter performance.

Growing work and learn from home trends amid the coronavirus pandemic have been driving the adoption of 5G as well as cloud computing technologies, which in turn have been creating demand for semiconductor devices. This might have been a major positive for KLA Corp. in the to-be-reported quarter.

The company launched four products for automotive chip manufacturing during the fiscal fourth quarter. These products are anticipated to have aided its quarterly performance.

In addition, increasing customer demand for systems and support is likely to have been a tailwind in the quarter under review.

Also, the company’s increasing investment in the advanced packaging market for boosting the adoption of new technologies might get reflected in the soon-to-be-reported quarterly results.

Growing investments in foundry and logic might have been other positives. Also, the company’s positive outlook toward foundry, logic and memory is likely to have contributed well to KLA Corp.’s semiconductor process control systems revenues in the to-be-reported quarter.

Further, strength in services due to growing installed base, higher utilization rate and increasing expansion of service opportunities in the trailing edge and Electronics, Packaging, and Components group is anticipated to have aided its performance the quarter under review.

Growing momentum in 5G and automotive is likely to have benefited the Electronics, Packaging, and Components group.

Furthermore, growing demand across the company’s optical portfolio including GEN5 is likely to get reflected in the to-be-reported quarter’s results.

Yet, uncertainties related to the ongoing pandemic might get reflected in the upcoming quarterly results. Also, long lead times for some products are expected to have been concerns for the company. Further, sluggishness across PCB, Display and Component Inspection is likely to have remained an overhang.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for KLA Corp. 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

It has an Earnings ESP of 0.00% and a Zacks Rank #2, at present.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

Agilent Technologies (A - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank of 1, at present.

Avnet (AVT - Free Report) has an Earnings ESP of +9.82% and a Zacks Rank of 1, at present.

CyberArk Software (CYBR - Free Report) has an Earnings ESP of +37.93% and a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.