- Adjusted Earnings Per Share (EPS): KLA Corp reported an adjusted EPS of $8.20, exceeding both the previous year’s $6.16 and the estimated $7.77.
- Revenue Growth: Total revenue increased by 24% year-over-year to $3.08 billion, surpassing expectations of $2.95 billion.
- Product and Service Revenue:
- Product revenue rose by 25% year-over-year to $2.41 billion, beating the estimate of $2.28 billion.
- Service revenue climbed by 18% to $667.4 million, above the projected $643.7 million.
- Research and Development (R&D) Expenses: R&D expenses increased by 8% to $346.2 million, slightly higher than the expected $335.1 million.
- Capital Expenditure: Capital expenditure surged by 20% to $92.3 million, exceeding the estimate of $68.5 million.
- Free Cash Flow: Free cash flow grew by 39% year-over-year to $757.2 million, though it did not reach the anticipated $937.2 million.
- Third Quarter Forecast: The company anticipates adjusted EPS between $7.45 and $8.65, compared to an estimate of $7.50.
- Growth Drivers: KLA noted strong performance, overcoming challenges from recent U.S. export controls, and highlighted growth in AI and high-performance computing sectors.
- Market Opinions: The company currently has 20 buy ratings, 11 hold ratings, and no sell ratings from analysts.
KLA-Tencor Corp on Smartkarma
Analyst Coverage of KLA-Tencor Corp on Smartkarma
On Smartkarma, independent analysts such as Baptista Research and William Keating have provided insightful coverage on KLA-Tencor Corp. Baptista Research‘s report titled “KLA Corporation’s Bold Moves in Semiconductor Tech—Can They Keep Up the Momentum? – Major Drivers” commended KLA’s impressive performance in the September 2024 quarter, with revenue reaching $2.84 billion and strong operational stability. Similarly, William Keating‘s analysis, “KLAC Q324. Heavy Emphasis On Leading Edge For Growth In 2025,” highlighted the company’s revenue growth of 10.5% QoQ and 18.3% YoY, emphasizing KLA’s focus on leading-edge technologies for future growth.
Both reports express bullish sentiments towards KLA Corporation, recognizing its financial stability, growth potential, and strategic positioning in the semiconductor industry. With a continued focus on innovation and advanced technology adoption, KLA-Tencor Corp seems well-positioned to capitalize on evolving market trends and maintain its competitive edge.
A look at KLA-Tencor Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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
Analysts using Smartkarma Smart Scores see a promising long-term outlook for KLA-Tencor Corp, a company specializing in yield management and process monitoring systems for the semiconductor industry. With a Growth score of 4 out of 5, the company is expected to experience solid expansion in the future, driven by increasing demand for its products. Additionally, KLA-Tencor received a Resilience score of 3, indicating a level of stability that positions it well for any market fluctuations.
While the Value and Dividend scores are at 2, suggesting moderate performance in these areas, the company’s Momentum score of 3 signifies a positive trend that could see KLA-Tencor Corp gaining traction in the market. Overall, based on the Smart Scores, KLA-Tencor Corp appears to be in a favorable position for sustainable growth and resilience in the semiconductor industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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