Semiconductor equipment supplier KLA late Wednesday beat Wall Street's targets for its fiscal first quarter and with its guidance for the current period. KLAC stock rose in extended trading.
The Milpitas, Calif.-based company earned an adjusted $5.74 a share on sales of $2.4 billion in the quarter ended Sept. 30. Analysts polled by FactSet had expected KLA earnings of $5.37 a share on sales of $2.36 billion. However, on a year-over-year basis, KLA earnings slid 19% while sales dropped 12%.
KLA's report marked its second consecutive quarter of year-over-year declines in sales and earnings.
For the current quarter, KLA expects to earn an adjusted $5.86 a share on sales of $2.45 billion. That's based on the midpoint of its guidance. Analysts had been looking for earnings of $5.47 a share on sales of $2.37 billion in the fiscal second quarter. In the year-earlier period, KLA earned $7.38 a share on sales of $2.98 billion.
KLAC Stock Rises After Report
In after-hours trading on the stock market today, KLAC stock advanced 1% to 459.50. During the regular session Wednesday, KLAC stock fell 3.3% to close at 454.84.
"Despite the challenging market conditions, our continued strong performance highlights the relative value of KLA products and services to our customers," Chief Executive Rick Wallace said in a news release. He also cited the company's resilient business model and commitment to delivering long-term value for shareholders.
KLAC stock has formed a cup-with-handle base with a buy point of 506.92, according to IBD MarketSmith charts. It notched a record high of 520.19 on Sept. 6.
On May 25, KLAC stock broke out of a cup base at a buy point of 429.46, MarketSmith charts show.
KLA Is On Two IBD Stock Lists
KLAC stock ranks fourth out of 27 stocks in IBD's semiconductor equipment industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 94 out of 99.
Last week, chip gear giant ASML beat estimates with its third-quarter results but disappointed with its sales outlook. Meanwhile, industry peer Lam Research delivered a beat-and-raise quarterly report.
KLAC stock is on two IBD lists: Long-Term Leaders and Tech Leaders.
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