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KLA Corporation (KLAC), founded in 1975 and headquartered in Milpitas, California, is a leading provider of process control and yield management solutions for the semiconductor and electronics industries. With a market cap of $87.9 billion, KLAC offers advanced inspection, metrology, and analytics products that help manufacturers improve production efficiency and quality. The company is scheduled to release its Q2 earnings on Thursday, Jan. 23.
Ahead of this event, analysts expect KLAC to report a profit of $7.73 per share, up 25.5% from $6.16 per share in the year-ago quarter. The company’s solid track record of consistently surpassing Wall Street's bottom-line estimates in the last four quarterly reports is even more impressive.
In Q1, the company reported an EPS of $7.33, which topped the consensus estimates by 4.3%. KLA Corporation’s performance beat expectations, driven by strong demand for semiconductor equipment and year-over-year growth in both earnings and revenue.
For fiscal 2025, analysts expect KLAC to report EPS of $30.37, up 27.9% from $23.74 in fiscal 2024.
Shares of KLA Corporation have climbed 18.9% over the past 52 weeks, trailing the S&P 500 Index's ($SPX) 26.3% rise and the 27.1% rally of the Technology Select Sector SPDR Fund (XLK) during the same timeframe.
KLA Corporation gained over 3% on Dec. 2, contributing to a rally in chip stocks that boosted the broader market. Shares of KLA Corporation dropped 3.7% after its Q1 earnings release on Oct. 30. The company reported revenue of $2.84 billion, an 18.5% year-over-year increase that beat analyst expectations by 3%.
KLA maintained a GAAP gross margin of 59.6%, reduced inventory days to 247 from 273, and achieved a free cash flow margin of 32.9%, slightly lower than the previous year. Additionally, its Q4 revenue guidance of $2.95 billion exceeded forecasts.
Analysts' consensus view on KLAC stock is optimistic, with a "Moderate Buy" rating overall. Out of 26 analysts covering the stock, 14 advise a "Strong Buy," one indicates a “Moderate Buy,” and 11 recommend a “Hold” rating.
The average analyst price target for KLAC is $805.83, suggesting a potential upside of 22.7% from the current levels.
