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KLA-Tencor (KLAC) to Post Q1 Earnings: What's in the Cards?
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KLA-Tencor Corporation (KLAC - Free Report) is set to report first-quarter fiscal 2020 results on Oct 30. It delivered a positive earnings surprise of 4.09% in the last reported quarter.
The company topped the Zacks Consensus Estimate in the trailing four quarters, with average of 9.31%.
Performance in the Last Reported Quarter
KLA-Tencor had reported fiscal fourth-quarter 2019 non-GAAP earnings of $1.78 per share, which surpassed the Zacks Consensus Estimate by 7 cents but decreased 19.8% from the year-ago period.
Revenues of $1.26 billion outpaced the Zacks Consensus Estimate of $1.25 billion and improved 17.6% on a year-over-year basis.
For the fiscal first quarter, the company expects revenues in the range of $1.31-$1.39 billion. The Zacks Consensus Estimate for revenues is currently pegged at $1.35 billion, indicating growth of 23.6% from the year-ago quarter.
Non-GAAP earnings are expected in the range of $2.04-$2.34 per share. The Zacks Consensus Estimate for earnings is currently pegged at $2.20, indicating a decline of 10.6% from the year-ago quarter.
KLA-Tencor expects memory to be approximately 42% of shipments in the fiscal first quarter. Foundry is expected to constitute around 44% of total shipments and Logic is anticipated to remain flat with the year-ago quarter.
Factors to Consider
KLA-Tencor’s robust product portfolio has been catering to increasing demand for wafer products. Also, the company’s efforts in bringing EUV lithography technology to the market have been gaining momentum.
These efforts, along with the expanding value of inspection and measurement in addressing critical customer problems, and semiconductor industry expansion in China are expected to have driven KLA-Tencor’s performance in the to-be-reported quarter.
Foundry and logic performed well in the fiscal fourth quarter, a trend that most likely continued in the fiscal first quarter as well, driven by next-generation technology development, capacity additions at leading-edge nodes, increasing competitive dynamics and investment in EUV infrastructure.
However, weakness in the memory segment might reflect on the company’s sales figures. Management also expects WFE to be down in 2019, largely due to weaker DRAM demand.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for KLA-Tencor 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. That is not the case here as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, KLA-Tencor has a Zacks Rank #2.
Stocks That Warrant a Look
Here are a few stocks worth considering, as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
Advanced Micro Devices, Inc. (AMD - Free Report) has an Earnings ESP of +6.54% and a Zacks Rank of #2.
Apple Inc. (AAPL - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank #3.
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The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
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KLA-Tencor (KLAC) to Post Q1 Earnings: What's in the Cards?
KLA-Tencor Corporation (KLAC - Free Report) is set to report first-quarter fiscal 2020 results on Oct 30. It delivered a positive earnings surprise of 4.09% in the last reported quarter.
The company topped the Zacks Consensus Estimate in the trailing four quarters, with average of 9.31%.
Performance in the Last Reported Quarter
KLA-Tencor had reported fiscal fourth-quarter 2019 non-GAAP earnings of $1.78 per share, which surpassed the Zacks Consensus Estimate by 7 cents but decreased 19.8% from the year-ago period.
Revenues of $1.26 billion outpaced the Zacks Consensus Estimate of $1.25 billion and improved 17.6% on a year-over-year basis.
KLA-Tencor Corporation Price and EPS Surprise
KLA-Tencor Corporation price-eps-surprise | KLA-Tencor Corporation Quote
Fiscal Q1 Forecasts
For the fiscal first quarter, the company expects revenues in the range of $1.31-$1.39 billion. The Zacks Consensus Estimate for revenues is currently pegged at $1.35 billion, indicating growth of 23.6% from the year-ago quarter.
Non-GAAP earnings are expected in the range of $2.04-$2.34 per share. The Zacks Consensus Estimate for earnings is currently pegged at $2.20, indicating a decline of 10.6% from the year-ago quarter.
KLA-Tencor expects memory to be approximately 42% of shipments in the fiscal first quarter. Foundry is expected to constitute around 44% of total shipments and Logic is anticipated to remain flat with the year-ago quarter.
Factors to Consider
KLA-Tencor’s robust product portfolio has been catering to increasing demand for wafer products. Also, the company’s efforts in bringing EUV lithography technology to the market have been gaining momentum.
These efforts, along with the expanding value of inspection and measurement in addressing critical customer problems, and semiconductor industry expansion in China are expected to have driven KLA-Tencor’s performance in the to-be-reported quarter.
Foundry and logic performed well in the fiscal fourth quarter, a trend that most likely continued in the fiscal first quarter as well, driven by next-generation technology development, capacity additions at leading-edge nodes, increasing competitive dynamics and investment in EUV infrastructure.
However, weakness in the memory segment might reflect on the company’s sales figures. Management also expects WFE to be down in 2019, largely due to weaker DRAM demand.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for KLA-Tencor 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. That is not the case here as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, KLA-Tencor has a Zacks Rank #2.
Stocks That Warrant a Look
Here are a few stocks worth considering, as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
TE Connectivity Ltd. (TEL - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Advanced Micro Devices, Inc. (AMD - Free Report) has an Earnings ESP of +6.54% and a Zacks Rank of #2.
Apple Inc. (AAPL - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank #3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>