What to expect from KLA’s Q4 2024 earnings report

KLA Corporation (KLAC), headquartered in Milpitas, California, designs, manufactures and sells process control, process enablement and performance management solutions for the semiconductor and related electronics industries. Valued at $116.67 billion at market capitalization, the company provides advanced process control and process enablement solutions for wafer and reticle manufacturing, integrated circuit manufacturing, packaging and printed circuit board manufacturing. The leading provider of process control and performance management solutions is expected to report its fiscal 2024 fourth quarter financial results after the market close on Wednesday, July 24.

Ahead of the event, analysts expect KLAC to report earnings of $6.08 per share on a diluted basis, up 12.6% from $5.40 per share in the year-ago quarter. The company has consistently topped Wall Street earnings per share estimates in its last four quarterly reports. In the previous quarter, KLAC revenue and non-GAAP EPS were both above the midpoint of the guidance range.

For the full year, analysts expect KLAC to report earnings per share of $23.30, down 8.2% from earnings of $25.37 in fiscal 2023.

KLAC shares have outperformed the S&P 500 ($SPX)’s gain of 16.8% YTD, and the stock is up 50% in the period. It has also outperformed the S&P 500 Technology Sector SPDR’s (XLK) gain of 22.4% in the same period.

On April 25, KLAC reported its third-quarter results. Total revenue was $2.36 billion, topping the consensus estimate of $2.32 billion. Adjusted earnings per share were $5.26, beating Wall Street estimates of $5.06. KLAC expects non-GAAP earnings for the fourth quarter to be in the range of $5.47 to $6.67 per share. KLAC shares closed up more than 2% on the day of the results and have been on an upward trend since then.

The consensus view on KLAC stock is Bullish, with an overall rating of “Moderate Buy.” Out of 24 analysts covering the stock, 13 recommend a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and 10 give a “Hold” rating. However, the average analyst price target for KLAC is $761.19, indicating a potential downside of 12.2% from current levels.

On the date of publication, Dipanjan Banchur did not hold (directly or indirectly) a position in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please refer to Barchart’s Disclosure Policy here.