- KLA Corp’s adjusted EPS for the third quarter was reported at $8.41, significantly higher than last year’s $5.26 and surpassing the expected $8.09.
- The company’s revenue reached $3.06 billion, marking a 30% increase year-over-year, beating the anticipated $3.01 billion.
- Product revenue saw a 35% rise year-over-year to $2.39 billion, compared to the expected $2.34 billion.
- Service revenue increased by 13% year-over-year, totaling $669.2 million, above the estimated $650.6 million.
- Research and Development (R&D) expenses amounted to $338.0 million, a 5.1% rise year-over-year, slightly below the $339.8 million forecast.
- Capital expenditure was $82.1 million, reflecting a 14% increase year-over-year, and was below the projected $86.9 million.
- Free cash flow reached $990.0 million, up 18% year-over-year, although it did not meet the forecasted $1.29 billion.
- For the fourth quarter, KLA Corp expects adjusted EPS to range between $7.75 and $9.31, with an estimate of $7.97.
- The company’s stock has received 19 buying recommendations, 11 holds, and no sell recommendations.
KLA-Tencor Corp on Smartkarma
Analyst coverage on Smartkarma of KLA-Tencor Corp by Baptista Research highlights the company’s strong financial performance. In their report titled “KLA Corporation: Inspection & Metrology Advancements To Possibly Disrupt the Market! – Major Drivers“, KLA Corporation reported record revenue of $10.85 billion for the year, with Process Control revenue growing over 12%, indicating an increase in market share. The robust Service business performance also grew 15% to $2.5 billion. Baptista Research‘s positive sentiment reflects the resilience and solid growth shown by KLA Corporation.
William Keating, another analyst on Smartkarma, focuses on KLA Corporation’s emphasis on leading-edge technology for growth in 2025. In the report “KLAC Q324. Heavy Emphasis On Leading Edge For Growth In 2025“, Keating highlights the company’s impressive performance, with Q324 revenue reaching $2.84 billion, up 10.5% QoQ and 18.3% YoY. The CEO’s statement about the dominance in the leading edge technology sector adds an interesting perspective to KLA’s strategic position. Keating’s bullish outlook aligns with the company’s strong operational and financial stability showcased in the report.
A look at KLA-Tencor Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
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
Based on the Smartkarma Smart Scores, KLA-Tencor Corp is positioned for long-term growth and momentum. With a strong Growth score of 4 and a top-tier Momentum score of 5, the company is showing promising signs of expansion and market performance. Additionally, KLA-Tencor scored a respectable 3 in Resilience, indicating a reasonable level of stability in uncertain market conditions, providing investors with a sense of assurance.
KLA-Tencor Corp‘s Value and Dividend scores, both at 2, suggest that the company may be currently trading at fair value with moderate dividend returns. Overall, the company’s focus on manufacturing yield management systems for the semiconductor industry, alongside its global presence in sales and service centers, paints a picture of a company with a solid foundation and positive growth potential in the long run.
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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