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KLA (KLAC) Set to Report Q3 Earnings: What's in the Cards?

KLA Corporation KLAC is scheduled to report its third-quarter fiscal 2024 results on Apr 25.

For the fiscal third quarter, KLAC expects revenues to be $2.34 billion, plus/minus $125 million. The Zacks Consensus Estimate for revenues is pegged at $2.30 billion, indicating a decrease of 5.39% from the year-ago fiscal quarter’s reported figure.

KLA expects non-GAAP earnings of $5.26 per share, plus/minus 60 cents. The consensus mark for earnings is pegged at $4.94 per share, down 4% over the past 30 days, indicating a decline of 10.02% 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 6.72%.

KLA Corporation Price and EPS Surprise

KLA Corporation Price and EPS Surprise
KLA Corporation Price and EPS Surprise

KLA Corporation price-eps-surprise | KLA Corporation Quote

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Let’s see how things have shaped up for the upcoming announcement:

Factors to Consider

KLA’s fiscal third-quarter results are expected to have benefited from the strong performance of the wafer inspection business, owing to strong demand for advanced wafer inspection applications in leading-edge technology development.

Growing adoption of KLA’s 8900 series platform for high throughput macro inspection, increased demand in the legacy node and advanced packaging categories made the platform one of the best-performing product lines in its optical inspection portfolio in 2023. The trend is expected to have continued in the fiscal third quarter.

Increased investments across multiple nodes, and rising capital intensity in Foundry & Logic are expected to have driven the top-line growth. KLA’s emphasis on the integration of AI into its solutions has driven its outperformance in the semiconductor market.

However, weakness in the PCB, Display and Component Inspection remains a headwind. Softness in memory and leading-edge, logic and foundry investments have been a concern.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

KLA has an Earnings ESP of -2.04% and carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Meta Platforms META has an Earnings ESP of +0.62% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Meta shares have gained 41.8% year to date. META is set to report its first-quarter 2024 results on Apr 24.

Vertiv VRT has an Earnings ESP of +1.24% and a Zacks Rank #3.

Vertiv shares have gained 68.7% year to date. VRT is set to report its first-quarter 2024 results on Apr 24.

Itron ITRI has an Earnings ESP of +5.88% and has a Zacks Rank of 2 at present.

Itron shares have gained 19.8% year to date. ITRI is set to report its first-quarter 2024 results on May 2.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Itron, Inc. (ITRI) : Free Stock Analysis Report

KLA Corporation (KLAC) : Free Stock Analysis Report

Vertiv Holdings Co. (VRT) : Free Stock Analysis Report

Meta Platforms, Inc. (META) : Free Stock Analysis Report

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Zacks Investment Research