Stock Story -
Semiconductor manufacturing equipment maker KLA Corporation (NASDAQ:KLAC) will be announcing earnings results tomorrow after market close. Here's what investors should know.
KLA Corporation beat analysts' revenue expectations by 1.7% last quarter, reporting revenues of $2.36 billion, down 3% year on year. It was a decent quarter for the company, with a solid beat of analysts' EPS estimates and optimistic revenue guidance for the next quarter.
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This quarter, analysts are expecting KLA Corporation's revenue to grow 6.7% year on year to $2.51 billion, a reversal from the 5.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $6.10 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. KLA Corporation has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 3.1% on average.
Looking at KLA Corporation's peers in the semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Micron Technology (NASDAQ:MU) delivered year-on-year revenue growth of 81.5%, beating analysts' expectations by 2%, and NXP (NASDAQ:NXPI) Semiconductors reported a revenue decline of 5.2%, in line with consensus estimates. Micron Technology traded down 7.1% following the results.
Read the full analysis of Micron Technology's and NXP Semiconductors 's results on StockStory.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 3.6% on average over the last month. KLA Corporation is up 1.9% during the same time and is heading into earnings with an average analyst price target of $815.8 (compared to the current share price of $809.03).