Semiconductor equipment maker KLA late Thursday topped analyst estimates for its fiscal second quarter but guided well below views for the current period. KLAC stock fell in extended trading.
The Milpitas, Calif.-based company earned an adjusted $6.16 a share on sales of $2.49 billion in the quarter ended Dec. 31. Analysts polled by FactSet had predicted KLA earnings of $5.91 a share on sales of $2.46 billion. However, on a year-over-year basis, KLA sales and earnings both declined 17%.
For the current quarter ending in March, KLA predicted adjusted earnings of $5.26 a share on sales of $2.3 billion. That's based on the midpoint of its guidance. Wall Street was modeling earnings of $5.85 a share on sales of $2.46 billion in the fiscal third quarter. In the year-earlier period, KLA earned $5.49 a share on sales of $2.46 billion.
"While market conditions remain challenging in the near-term, with limited visibility regarding the timing of a resumption in sustainable demand, we believe our business has stabilized around current revenue levels," Chief Executive Rick Wallace said in a news release.
He added, "As we look forward, we are encouraged by the improvement in our customers' businesses across multiple markets."
KLAC Stock Drops After Report
In after-hours trading on the stock market today, KLAC stock dropped around 5% to 609.
During the regular session Thursday, KLAC stock rose 0.5% to close at 641.69.
KLAC stock ranks seventh 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.
IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
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