Earnings Alerts

KLA-Tencor Corp (KLAC) Earnings: 4Q Adjusted EPS Surpasses Estimates with Strong Revenue Growth

  • 4Q Adjusted EPS: Achieved $6.60, higher than last year’s $5.40, and exceeded estimates of $6.11.
  • Revenue: Reported $2.57 billion, marking a 9.1% increase year-over-year, exceeding the estimate of $2.52 billion.
  • Product Revenue: Reached $1.95 billion, a 7.6% year-over-year growth, above the expected $1.91 billion.
  • Service Revenue: Achieved $613.9 million, reflecting a 14% increase year-over-year, surpassing the estimate of $605.5 million.
  • R&D Expenses: Recorded $325.8 million, a 2.7% increase from last year, slightly above the estimate of $324.6 million.
  • Capital Expenditure: Decreased by 23% year-over-year to $60.7 million, below the estimated $74.8 million.
  • Free Cash Flow: Amounted to $831.9 million, which is a 5.5% decline year-over-year but still above the estimated $820.1 million.
  • First Quarter Forecast: The company forecasts adjusted EPS between $6.40 and $7.60, compared to an estimated $6.49.
  • Analyst Ratings: Currently, 17 buys, 12 holds, and 1 sell.

KLA-Tencor Corp on Smartkarma

Analysts on Smartkarma have differing views on KLA-Tencor Corp, as highlighted in recent research reports. William Keating‘s analysis, titled “KLAC. Priced For Perfection In 2025 & Beyond,” leans bearish. In the report, Q124 revenues amounted to $2.36 billion, down 5% QoQ and 3% YoY, with concerns raised about future growth prospects despite China representing 42% of revenue. The stock’s high valuation and tepid CY2024 outlook are areas of caution.

On the other hand, Baptista Research‘s bullish stance in their report “KLA-Tencor Corp – KLA Corporation: A Segment-Wise Breakdown Of Key Growth Areas! – Major Drivers” provides a more positive outlook. The report highlights strong performance in Q1 2024, with revenues exceeding expectations and EPS results surpassing guidance. Despite challenges, like the exit from the flat-panel business, the company’s diversified growth drivers, including automotive and specialty semiconductor equipment, are seen as promising for future success.


A look at KLA-Tencor Corp Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience2
Momentum4
OVERALL SMART SCORE2.8

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, KLA-Tencor Corp appears to have a promising long-term outlook. With a strong focus on growth and momentum, scoring high at 4 in both categories, the company seems positioned for future expansion and market performance. The emphasis on growth implies potential for increasing market share and revenue over time, providing investors with an optimistic view of the company’s trajectory. Additionally, a decent score in momentum suggests that KLA-Tencor Corp is likely to maintain its positive stock price trend in the foreseeable future.

KLA-Tencor Corporation, known for manufacturing yield management and process monitoring systems for the semiconductor industry, has received average scores for value, dividend, and resilience, indicating room for improvement in these areas. Despite this, the company’s core focus on growth and momentum could offset these potential weaknesses. By leveraging its expertise in analyzing product and process quality in semiconductor manufacturing, KLA-Tencor Corp can continue to drive innovation and efficiency in the industry, cementing its position as a key player in the market.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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