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KLA (KLAC) Set to Report Q2 Earnings: What's in the Cards?
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KLA (KLAC - Free Report) is scheduled to report its fiscal second-quarter 2023 results on Jan 26.
For the fiscal second quarter, KLAC expects revenues between $2.65 billion and $2.95 billion. The Zacks Consensus Estimate for sales is pegged at $2.8 billion, indicating growth of 19.2% from the year-ago fiscal quarter’s reported value.
KLAC anticipates non-GAAP earnings between $6.30 per share and $7.70 per share. The consensus mark for earnings is pegged at $7.08 per share, indicating 26.6% growth from the previous-year fiscal quarter’s reported figure.
KLAC’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 7.43%.
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.
KLA’s strong customer demand across major product groups is expected to have benefited its performance in the to-be-reported quarter.
Further, strength in foundry and logic is likely to have accelerated Semiconductor Process Control revenues. KLAC’s continuous investment in multiple nodes and rising capital intensity are expected to have remained a positive.
Furthermore, ongoing investments in advanced packaging and automotive electronics are likely to have contributed well to the Semiconductor Process Control revenues in the fiscal second quarter.
In addition, expanding installed base, continued high utilization rates, increasing customer adoption of long-term service agreements and expansion of Service opportunities in the legacy nodes are expected to have benefited the performance of the company in the to-be-reported quarter.
However, sluggishness in the consumer electronics market is expected to have acted as a headwind for KLA.
Further, the imposition of new export regulations by the United States on the sale of semiconductors to China is expected to have negatively impacted the upcoming results.
Additionally, supply-chain challenges due to the coronavirus pandemic are likely to have continued impacting KLA’s financial performance during the fiscal second quarter.
What Our Model Says
Our proven model predicts an earnings beat for KLAC 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, which is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
KLAC has an Earnings ESP of +0.04% and a Zacks Rank #3 at present.
Other Stocks to Consider
Here are some other stocks worth considering, as our model shows that these too have the right combination of elements to beat on earnings this season.
AMETEK is scheduled to release its fourth-quarter 2022 results on Feb 2. The Zacks Consensus Estimate for AME earnings is pegged at $1.47 per share, suggesting an increase of 7.3% from the prior-year quarter’s reported figure.
Endava (DAVA - Free Report) has an Earnings ESP of +1.97% and a Zacks Rank #3 at present.
Endava is set to report second-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.94% from the prior-year period’s reported figure.
Analog Devices (ADI - Free Report) has an Earnings ESP of +2.99% and a Zacks Rank #3 at present
Analog Devices is scheduled to release its first-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.59 per share, suggesting an increase of 33.5% from the prior-year quarter’s reported figure.
Image: Bigstock
KLA (KLAC) Set to Report Q2 Earnings: What's in the Cards?
KLA (KLAC - Free Report) is scheduled to report its fiscal second-quarter 2023 results on Jan 26.
For the fiscal second quarter, KLAC expects revenues between $2.65 billion and $2.95 billion. The Zacks Consensus Estimate for sales is pegged at $2.8 billion, indicating growth of 19.2% from the year-ago fiscal quarter’s reported value.
KLAC anticipates non-GAAP earnings between $6.30 per share and $7.70 per share. The consensus mark for earnings is pegged at $7.08 per share, indicating 26.6% growth from the previous-year fiscal quarter’s reported figure.
KLAC’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 7.43%.
KLA Corporation Price and EPS Surprise
KLA Corporation price-eps-surprise | KLA Corporation Quote
Key Factors to Note
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.
KLA’s strong customer demand across major product groups is expected to have benefited its performance in the to-be-reported quarter.
Further, strength in foundry and logic is likely to have accelerated Semiconductor Process Control revenues. KLAC’s continuous investment in multiple nodes and rising capital intensity are expected to have remained a positive.
Furthermore, ongoing investments in advanced packaging and automotive electronics are likely to have contributed well to the Semiconductor Process Control revenues in the fiscal second quarter.
In addition, expanding installed base, continued high utilization rates, increasing customer adoption of long-term service agreements and expansion of Service opportunities in the legacy nodes are expected to have benefited the performance of the company in the to-be-reported quarter.
However, sluggishness in the consumer electronics market is expected to have acted as a headwind for KLA.
Further, the imposition of new export regulations by the United States on the sale of semiconductors to China is expected to have negatively impacted the upcoming results.
Additionally, supply-chain challenges due to the coronavirus pandemic are likely to have continued impacting KLA’s financial performance during the fiscal second quarter.
What Our Model Says
Our proven model predicts an earnings beat for KLAC 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, which is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
KLAC has an Earnings ESP of +0.04% and a Zacks Rank #3 at present.
Other Stocks to Consider
Here are some other stocks worth considering, as our model shows that these too have the right combination of elements to beat on earnings this season.
AMETEK (AME - Free Report) has an Earnings ESP of +0.68% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
AMETEK is scheduled to release its fourth-quarter 2022 results on Feb 2. The Zacks Consensus Estimate for AME earnings is pegged at $1.47 per share, suggesting an increase of 7.3% from the prior-year quarter’s reported figure.
Endava (DAVA - Free Report) has an Earnings ESP of +1.97% and a Zacks Rank #3 at present.
Endava is set to report second-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.94% from the prior-year period’s reported figure.
Analog Devices (ADI - Free Report) has an Earnings ESP of +2.99% and a Zacks Rank #3 at present
Analog Devices is scheduled to release its first-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.59 per share, suggesting an increase of 33.5% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.