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KLA Corp. (KLAC) to Report Q1 Earnings: What's in Store?

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KLA Corporation (KLAC - Free Report) is scheduled to report fiscal first-quarter 2022 results on Oct 27.

For the fiscal first quarter, the company expects revenues between $1.92 billion and $2.12 billion. The Zacks Consensus Estimate for sales is pegged at $2.02 billion, indicating growth of 31.6% from the year-ago reported value.

Further, it anticipates non-GAAP earnings per share in the range of $4.01-$4.89 for fiscal first-quarter 2022. The consensus mark for earnings per share is pegged at $4.45, indicating a 46.9% rise from the previous-year reported figure.

It surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 7.94%.

KLA Corporation Price and EPS Surprise

KLA Corporation Price and EPS Surprise

KLA Corporation price-eps-surprise | KLA Corporation Quote

Key Factors to Note

Increasing customer demand across each of KLA Corp.’s major product groups is likely to have aided the company’s fiscal first-quarter performance.

Solid momentum in wafer fabrication equipment is expected to have continued aiding its performance in the to-be-reported quarter.

Growing investments in advanced laser, sensor, optics and data analytics technologies might get reflected in the upcoming quarterly results.

Strength in optical pattern wafer inspection is anticipated to have persistently driven the company’s semiconductor process control segment in the quarter under review.

Also, increasing investments 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, logic and memory might have contributed well to the semiconductor process control systems business in the quarter under discussion.

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

Yet, uncertainties related to the ongoing coronavirus pandemic might get reflected in the upcoming quarterly results. Also, supply chain challenges are expected to have been concerns for the company.

What Our Model Says

Our proven model predicts 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. 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 +0.41% and a Zacks Rank #3, at present.

Other Stocks to Consider

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

Apple (AAPL - Free Report) has an Earnings ESP of +5.69% and a Zacks Rank of 3, at present.

Clarivate PLC (CLVT - Free Report) has an Earnings ESP of +1.59% and a Zacks Rank of 2, at present.

Fortive Corporation (FTV - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank of 3, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.


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