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KLA (KLAC) to Report Q1 Earnings: What's in the Offing?
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KLA Corporation (KLAC - Free Report) is scheduled to report first-quarter fiscal 2023 results on Oct 26.
For the fiscal first quarter, KLAC expects revenues between $2.475 billion and $2.725 billion. The Zacks Consensus Estimate for sales is pegged at $2.59 billion, indicating growth of 25.7% from the year-ago fiscal quarter’s reported value.
Our estimate suggests revenues of $2.56 billion, indicating an increase of 23% from the prior-year fiscal quarter’s reported figure.
Management anticipates non-GAAP earnings per share in the range of $5.70-$6.80 for the fiscal first quarter. The consensus mark for earnings per share is pegged at $6.21, indicating a 33.8% rise from the previous-year fiscal quarter’s reported figure. The consensus mark has moved 0.3% south in the past 7 days.
We expect earnings of $6.23 per share, implying a rise of 34.4% from the same-quarter figure last year.
KLAC’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 5.13%.
Strong customer demand across KLA’s all major product groups is likely to have benefited its performance in the fiscal first quarter.
Continuous efforts to expand KLA’s product portfolio and develop a comprehensive suite of products and technologies might have been key drivers in the to-be-reported quarter.
Growing digitization across multiple industries and related end markets, advancement in emerging technologies and an increasing investment in legacy nodes are expected to have constantly driven demand for semiconductors in the underlined quarter.
Solid adoption of advanced Wafer Inspection applications in leading-edge technology development is likely to have continued driving Wafer Inspection revenues in the quarter under review. We expect Wafer Inspection revenues to rise 10.3% in the fiscal first quarter from the year-ago fiscal quarter’s reading.
In foundry and logic, KLAC has been simultaneously investing in multiple nodes and rising capital intensity for some time now. This might have augmented the Semiconductor Process Control revenues in the fiscal first quarter. Our estimate suggests Semiconductor Process Control revenues to grow 20.9% from the year-ago fiscal quarter’s level.
An expanding installed base, increasing customer adoption of long-term service agreements, higher utilization rates and an extension of service opportunities in the legacy nodes are expected to have steadily driven Services revenues in the September quarter. Our estimate for Services revenues is pegged at 15% growth from the same-quarter level last year.
In addition, KLA’s Electronics, Packaging and Components or the EPC group is likely to have performed well in the fiscal first quarter owing to strength in automotive electronics, 5G and advanced packaging.
However, supply-chain challenges due to the ongoing coronavirus pandemic are likely to have continued impacting KLA’s financial performance during the fiscal first quarter. The pandemic-induced fresh lockdowns in China are likely to have remained a headwind.
Mounting expenses and the ongoing geopolitical tensions are expected to have hurt KLAC’s profitability in the quarter under review.
What Our Model Says
Our proven model does not predict an earnings beat for KLA 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 as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
KLA has an Earnings ESP of -0.56% and a Zacks Rank #5 (Sell) at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Fortinet is set to report third-quarter 2022 results on Nov 2. The Zacks Consensus Estimate for FTNT’s earnings is pegged at 27 cents per share, suggesting an increase of 35% from the prior-year period’s reported figure.
The Trade Desk (TTD - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 14. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
ZoomInfo Technologies (ZI - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank of 2 at present.
ZoomInfo Technologies is scheduled to release third-quarter 2022 results on Nov 1. The Zacks Consensus Estimate for ZI’s earnings is pegged at 20 cents per share, suggesting an increase of 53.9% from the prior-year quarter’s reported figure.
Image: Bigstock
KLA (KLAC) to Report Q1 Earnings: What's in the Offing?
KLA Corporation (KLAC - Free Report) is scheduled to report first-quarter fiscal 2023 results on Oct 26.
For the fiscal first quarter, KLAC expects revenues between $2.475 billion and $2.725 billion. The Zacks Consensus Estimate for sales is pegged at $2.59 billion, indicating growth of 25.7% from the year-ago fiscal quarter’s reported value.
Our estimate suggests revenues of $2.56 billion, indicating an increase of 23% from the prior-year fiscal quarter’s reported figure.
Management anticipates non-GAAP earnings per share in the range of $5.70-$6.80 for the fiscal first quarter. The consensus mark for earnings per share is pegged at $6.21, indicating a 33.8% rise from the previous-year fiscal quarter’s reported figure. The consensus mark has moved 0.3% south in the past 7 days.
We expect earnings of $6.23 per share, implying a rise of 34.4% from the same-quarter figure last year.
KLAC’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 5.13%.
KLA Corporation Price and EPS Surprise
KLA Corporation price-eps-surprise | KLA Corporation Quote
Key Factors to Note
Strong customer demand across KLA’s all major product groups is likely to have benefited its performance in the fiscal first quarter.
Continuous efforts to expand KLA’s product portfolio and develop a comprehensive suite of products and technologies might have been key drivers in the to-be-reported quarter.
Growing digitization across multiple industries and related end markets, advancement in emerging technologies and an increasing investment in legacy nodes are expected to have constantly driven demand for semiconductors in the underlined quarter.
Solid adoption of advanced Wafer Inspection applications in leading-edge technology development is likely to have continued driving Wafer Inspection revenues in the quarter under review. We expect Wafer Inspection revenues to rise 10.3% in the fiscal first quarter from the year-ago fiscal quarter’s reading.
In foundry and logic, KLAC has been simultaneously investing in multiple nodes and rising capital intensity for some time now. This might have augmented the Semiconductor Process Control revenues in the fiscal first quarter. Our estimate suggests Semiconductor Process Control revenues to grow 20.9% from the year-ago fiscal quarter’s level.
An expanding installed base, increasing customer adoption of long-term service agreements, higher utilization rates and an extension of service opportunities in the legacy nodes are expected to have steadily driven Services revenues in the September quarter. Our estimate for Services revenues is pegged at 15% growth from the same-quarter level last year.
In addition, KLA’s Electronics, Packaging and Components or the EPC group is likely to have performed well in the fiscal first quarter owing to strength in automotive electronics, 5G and advanced packaging.
However, supply-chain challenges due to the ongoing coronavirus pandemic are likely to have continued impacting KLA’s financial performance during the fiscal first quarter. The pandemic-induced fresh lockdowns in China are likely to have remained a headwind.
Mounting expenses and the ongoing geopolitical tensions are expected to have hurt KLAC’s profitability in the quarter under review.
What Our Model Says
Our proven model does not predict an earnings beat for KLA 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 as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
KLA has an Earnings ESP of -0.56% and a Zacks Rank #5 (Sell) at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Fortinet (FTNT - Free Report) has an Earnings ESP of +0.92% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortinet is set to report third-quarter 2022 results on Nov 2. The Zacks Consensus Estimate for FTNT’s earnings is pegged at 27 cents per share, suggesting an increase of 35% from the prior-year period’s reported figure.
The Trade Desk (TTD - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 14. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
ZoomInfo Technologies (ZI - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank of 2 at present.
ZoomInfo Technologies is scheduled to release third-quarter 2022 results on Nov 1. The Zacks Consensus Estimate for ZI’s earnings is pegged at 20 cents per share, suggesting an increase of 53.9% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.