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What's in Store for Kulicke and Soffa (KLIC) in Q4 Earnings?

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Kulicke and Soffa (KLIC - Free Report) is set to release fourth-quarter fiscal 2021 results on Nov 17.

On Nov 1, Kulicke and Soffa updated its guidance for the to-be-reported quarter. The company now expects revenues of $485 million and earnings in the $2.15-$2.17 per share range.

The Zacks Consensus Estimate for earnings is currently pegged at $2.11 per share, up 3.4% over the past 30 days. The company had reported earnings of 29 cents per share in the year-ago quarter.

The consensus mark for the top line is currently pegged at $485 million, implying 173% growth from the figure reported in the year-ago quarter.

Kulicke and Soffa’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing the same in the remaining one, delivering an earnings surprise of 12.30%, on average.
 

 

Let’s see how things have shaped up for Kulicke and Soffa prior to this announcement.

Factors to Note

Kulicke and Soffa’s fourth-quarter fiscal 2021 results are expected to have benefited from strong demand for its solutions in the 5G, semiconductor, automotive and LED end-markets.

Solid adoption of semiconductor offerings supporting high-density assembly and advanced LED solutions supporting emerging mini-LED capable displays are key catalysts.

Recovery in the memory end-market, along with strong demand for Kulicke and Soffa’s advanced packaging solutions, is expected to have benefited top-line growth in the to-be-reported quarter.

However, increased expenses due to ongoing global supply chain challenges are expected to have hurt gross margin in fourth quarter.

What Our Model Indicates

Per the Zacks model, 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.

Kulicke and Soffa has an Earnings ESP of +2.45% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are a few other companies worth considering as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:

Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Applied Materials’ shares have returned 81.1% year to date compared with the Zacks Semiconductor Equipment - Wafer Fabrication industry’s growth of 66.5% and the Computer & Technology sector’s return of 27.9% year-to-date.

Agilent Technologies (A - Free Report) has an Earnings ESP of +0.61% and a Zacks Rank of 3.

Agilent shares have returned 33.1% year to date compared with the Zacks Electronics- Testing Equipment industry’s growth of 17.3%. Agilent has outperformed the Computer & Technology sector’s return of 27.9% year-to-date.

Intuit (INTU - Free Report) has an Earnings ESP of +1.87% and a Zacks Rank of 3.

Intuit shares have returned 64.8% year to date compared with the Zacks Computer Software industry’s growth of 42.3%. Intuit has outperformed the Computer & Technology sector’s return of 27.9% year to date.

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