KLA-Tencor Corp (KLAC) Earnings Drop as Company Exits FPD Business and Cuts 3Q Adjusted EPS Forecast

KLA-Tencor Corp on Smartkarma

KLA-Tencor Corp, a leading semiconductor equipment company, has been the subject of recent analyst coverage on Smartkarma, an independent investment research network. Baptista Research, a bullish provider, published an insight discussing the company’s revenue of nearly $9.7 billion in 2023, which marked a decrease of 8% compared to the previous year. Despite this, the company exceeded its initial revenue projections thanks to business segments such as automotive and specialty semiconductor process equipment experiencing growth.

On the other hand, William Keating, a bearish provider, published two insights on KLA-Tencor Corp. The first insight highlighted the company’s Q423 revenue of $2.49 billion, which was marginally above the guided midpoint and represented a 3.6% increase from the previous quarter. However, the company’s net income saw a decrease of $158 million QoQ. The second insight discussed the company’s Q323 revenue of $2.40 billion, which was at the upper end of the guidance range and represented a 2% increase from the previous quarter. Despite overall revenues tracking to an 8.6% decline, the company’s services revenue is on track for ~8% YoY growth.

A look at KLA-Tencor Corp Smart Scores

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

KLA-Tencor Corporation, a company that makes systems for the semiconductor industry, has a promising long-term outlook according to the Smartkarma Smart Scores. These scores, which range from 1 to 5, indicate the company’s overall performance in different areas. KLA-Tencor scores a 2 for value, meaning it may be considered undervalued by investors. It also scores a 2 for dividend, indicating it may not be a top choice for those seeking regular income.

However, the company scores a 4 for growth, suggesting it has strong potential for future growth. This is supported by its score of 5 for momentum, meaning it has been performing well in the market recently. KLA-Tencor also scores a 2 for resilience, which suggests it may not be as stable as other companies in the industry. Overall, while there are some areas for improvement, KLA-Tencor’s high scores in growth and momentum indicate a positive long-term outlook for the company.

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