Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>KLA Corporation reported its Q1 2024 earnings call, where its performance indicates a blend of promising and challenging factors.</li><li>The company's revenues for the quarter noted a solid $2.36 billion, surpassing its guidance range midpoint.</li><li>Further, its exit from the flat panel business contributed to elevated EPS results on both non-GAAP and GAAP fronts, surpassing the adjusted midpoint guidance issued on March 18.</li></ul>

KLA Corporation reported its Q1 2024 earnings call, where its performance indicates a blend of promising and challenging factors.The company's revenues for the quarter noted a solid $2.36 billion, surpassing its guidance range midpoint.Further, its exit from the flat panel business contributed to elevated EPS results on both non-GAAP and GAAP fronts, surpassing the adjusted midpoint guidance issued on March 18.

KLA-Tencor Corp - KLA Corporation: A Segment-Wise Breakdown Of Key Growth Areas! - Major Drivers

Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Ingenuity

Our focus is exclusively on in-depth research & consulting in the broader semiconductor industry. We focus on the key players, namely Intel, Micron, Qualcomm, Apple, Samsung, NVIDIA, AMD, TSMC & Global Foundries - as well as some of the lesser known, but nonetheless critical, companies such as ASML (for EUV), Mellanox, Cavium, Xilinx etc. We specialise in their products, roadmaps, process technologies, competitive advantages & threats etc. We also help our clients understand the implications of new and emerging technologies, e.g. 3D X-Point, 3D NAND, Carbon Nanotubes, Autonomous Driving, Graphene, Silicon Photonics, Wafer-Level Optics, Artificial Intelligence, FPGA, GPU, ASIC etc. 

Semiconductor Analysis & Research

<ul>
<li>Q423 revenues of $2.49 billion, marginally above the guided midpoint, up 3.6% QoQ but down 15.6% YoY. Net income was $583 million, down $158 million QoQ.</li>
<li>Current quarter guidance of $2.3 billion, down 8% QoQ and also down around 5% YoY</li>
<li>Interesting Q&amp;A discussion on backlog. KLAC's order book is risker than their peers due to their shorter lead times. Something to watch...</li>
</ul>


Q423 revenues of $2.49 billion, marginally above the guided midpoint, up 3.6% QoQ but down 15.6% YoY. Net income was $583 million, down $158 million QoQ.
Current quarter guidance of $2.3 billion, down 8% QoQ and also down around 5% YoY
Interesting Q&amp;A discussion on backlog. KLAC's order book is risker than their peers due to their shorter lead times. Something to watch...


<ul><li>KLA Corporation saw a revenue of nearly $9.7 billion in 2023, marking a decrease of 8% compared to the previous year.</li><li>Despite less leading-edge investment in both logic and memory, legacy node customers and the semiconductor infrastructure assisted in exceeding the initially projected revenue.</li><li>Business segments such as automotive, specialty semiconductor process equipment, and infrastructure for wafer and mass manufactures experienced growth in 2023.</li></ul>

KLA Corporation saw a revenue of nearly $9.7 billion in 2023, marking a decrease of 8% compared to the previous year.Despite less leading-edge investment in both logic and memory, legacy node customers and the semiconductor infrastructure assisted in exceeding the initially projected revenue.Business segments such as automotive, specialty semiconductor process equipment, and infrastructure for wafer and mass manufactures experienced growth in 2023.

KLA Corporation: Leading Edge Investments and Memory Conversions & Other Major Drivers

<ul>
<li>Q124 revenues of $3.79 billion, pretty much flat sequentially both QoQ and YoY, and also marginally better than guidance.</li>
<li>Looking ahead, the company forecasted Q224 revenues $3.8 billion, i.e. flat QoQ. Still no full year 2024 outlook</li>
<li>Technology transitions such as GAA, Backside Power, molybdenum replacing tungsten &amp; the rise of generative AI will all be growth drivers in 2025 &amp; beyond </li>
</ul>


Q124 revenues of $3.79 billion, pretty much flat sequentially both QoQ and YoY, and also marginally better than guidance.
Looking ahead, the company forecasted Q224 revenues $3.8 billion, i.e. flat QoQ. Still no full year 2024 outlook
Technology transitions such as GAA, Backside Power, molybdenum replacing tungsten &amp; the rise of generative AI will all be growth drivers in 2025 &amp; beyond 


LRCX. Mounting Tailwinds Bode Well For 2025 & Beyond

<ul>
<li>Q323 revenues of $2.40 billion, at the upper end of the guidance range, up 2% QoQ but down 12.5% YoY</li>
<li>Current quarter revenue forecast of $2.45 billion, essentially flat sequentially</li>
<li>Services revenue on track for ~8% YoY growth despite overall revenues tracking to an 8.6% YoY decline..</li>
</ul>


Q323 revenues of $2.40 billion, at the upper end of the guidance range, up 2% QoQ but down 12.5% YoY
Current quarter revenue forecast of $2.45 billion, essentially flat sequentially
Services revenue on track for ~8% YoY growth despite overall revenues tracking to an 8.6% YoY decline..


United States

KLA-Tencor Corporation manufactures yield management and process monitoring systems for the semiconductor industry.  The Company's systems are used to analyze product and process quality at critical steps in the manufacture of circuits and provide feedback so that fabrication problems can be identified. KLA-Tencor operates sales, service, and application centers worldwide.

KLA-Tencor Corp (KLAC US)

KLA-Tencor Corp - KLA Corporation: A Segment-Wise Breakdown Of Key Growth Areas! - Major Drivers

KLA Corporation reported its Q1 2024 earnings call, where its performance indicates a blend of promising and challenging factors. The company's...

Baptista Research

KLAC. Looks a Lot Like LRCX!

Q423 $2.49 billion, +3.6% QoQ, -15.6% YoY. Net income was $583 million, down $158 million QoQ. Q124 guidance of $2.3 billion, -8% QoQ -5% YoY,...

William Keating

KLA Corporation: Leading Edge Investments and Memory Conversions & Other Major Drivers

KLA Corporation saw a revenue of nearly $9.7 billion in 2023, marking a decrease of 8% compared to the previous year. Despite less leading-edge...

Baptista Research

LRCX. Mounting Tailwinds Bode Well For 2025 & Beyond

Q124 revenues $3.79 billion, flat QoQ and YoY. Current quarter revenue guide also flat. China revenues up 2 points to 42%. I can see this becoming...

William Keating

KLAC. Bouncing Along The Bottom

Q323 revenue $2.40 billion, +2% QoQ but -12.5% YoY. Q423 forecast of $2.45 billion. Services revenue on track for ~8% YoY growth despite overall...

William Keating