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KLA Corp. (KLAC) to Report Q3 Earnings: What's in Store?
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KLA Corporation (KLAC - Free Report) is scheduled to report fiscal third-quarter 2022 results on Apr 28.
For the fiscal third quarter, the company expects revenues between $2.1 billion and $2.3 billion. The Zacks Consensus Estimate for sales is pegged at $2.21 billion, indicating growth of 22.6% from the year-ago reported value.
Further, it anticipates non-GAAP earnings per share in the range of $4.35-$5.25 for fiscal third-quarter 2022. The consensus mark for earnings per share is pegged at $4.82, indicating a 25.2% rise from the previous-year reported figure.
It is to be noted that the figure has decreased 0.8% in the past 30 days.
It surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 6.7%.
KLA Corp.’s fiscal third-quarter performance is likely to have benefited from strong momentum in core markets and increasing customer demand across each of its major product groups.
The growing demand for semiconductors for accelerating digitization across multiple industries and related end markets is expected to have remained a key growth driver in the underlined quarter.
Solid momentum in wafer fabrication equipment is likely to have continued aiding its performance in the quarter under review.
In foundry and logic, the company has been simultaneously investing across multiple nodes and rising capital intensity. This might have continued supporting its fiscal third-quarter performance.
Strong growth across the wafer inspection portfolio — comprising broadband plasma, laser scanning, unpatterned and bare wafer inspection, macro inspection as well as eBeam products — might have been a tailwind.
Further, the rising installed base and increasing adoption of subscription-like contracts are expected to have continued driving services revenues in the quarter under discussion.
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 a concern.
Further, increasing operating expenses due to continuous investment in the global infrastructure, new product development programs and volume-dependent resources are likely to have hurt the company’s profitability.
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 -6.85% and a Zacks Rank #4 (Sell), 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.
Analog Devices is scheduled to release second-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.12 per share, suggesting an increase of 37.7% from the prior-year reported figure.
Cisco Systems (CSCO - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #2 at present.
Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, which suggests an increase of 3.61% from the prior-year reported figure.
HP (HPQ - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #3 at present.
HP is scheduled to release second-quarter fiscal 2022 results on May 26. The Zacks Consensus Estimate for HPQ’s earnings is pegged at $1.06 per share, which suggests an increase of 13.98% from the prior-year reported figure.
Image: Bigstock
KLA Corp. (KLAC) to Report Q3 Earnings: What's in Store?
KLA Corporation (KLAC - Free Report) is scheduled to report fiscal third-quarter 2022 results on Apr 28.
For the fiscal third quarter, the company expects revenues between $2.1 billion and $2.3 billion. The Zacks Consensus Estimate for sales is pegged at $2.21 billion, indicating growth of 22.6% from the year-ago reported value.
Further, it anticipates non-GAAP earnings per share in the range of $4.35-$5.25 for fiscal third-quarter 2022. The consensus mark for earnings per share is pegged at $4.82, indicating a 25.2% rise from the previous-year reported figure.
It is to be noted that the figure has decreased 0.8% in the past 30 days.
It surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 6.7%.
KLA Corporation Price and EPS Surprise
KLA Corporation price-eps-surprise | KLA Corporation Quote
Key Factors to Note
KLA Corp.’s fiscal third-quarter performance is likely to have benefited from strong momentum in core markets and increasing customer demand across each of its major product groups.
The growing demand for semiconductors for accelerating digitization across multiple industries and related end markets is expected to have remained a key growth driver in the underlined quarter.
Solid momentum in wafer fabrication equipment is likely to have continued aiding its performance in the quarter under review.
In foundry and logic, the company has been simultaneously investing across multiple nodes and rising capital intensity. This might have continued supporting its fiscal third-quarter performance.
Strong growth across the wafer inspection portfolio — comprising broadband plasma, laser scanning, unpatterned and bare wafer inspection, macro inspection as well as eBeam products — might have been a tailwind.
Further, the rising installed base and increasing adoption of subscription-like contracts are expected to have continued driving services revenues in the quarter under discussion.
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 a concern.
Further, increasing operating expenses due to continuous investment in the global infrastructure, new product development programs and volume-dependent resources are likely to have hurt the company’s profitability.
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 -6.85% and a Zacks Rank #4 (Sell), 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.
Analog Devices (ADI - Free Report) has an Earnings ESP of +2.17% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Analog Devices is scheduled to release second-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.12 per share, suggesting an increase of 37.7% from the prior-year reported figure.
Cisco Systems (CSCO - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #2 at present.
Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, which suggests an increase of 3.61% from the prior-year reported figure.
HP (HPQ - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #3 at present.
HP is scheduled to release second-quarter fiscal 2022 results on May 26. The Zacks Consensus Estimate for HPQ’s earnings is pegged at $1.06 per share, which suggests an increase of 13.98% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.