- KLA Corp reported fourth-quarter adjusted earnings per share (EPS) of $9.38, outperforming an estimate of $8.55 and improving from $6.60 year over year.
- Revenue reached $3.17 billion, a 24% increase from last year and surpassed the estimate of $3.08 billion.
- Product revenue rose by 26% year over year to $2.47 billion, exceeding the projected $2.4 billion.
- Service revenue was $702.6 million, marking a 14% increase from the previous year, beating the estimate of $679.9 million.
- Research and development expenses grew by 8.4% to $353.0 million, slightly above the estimated $349.5 million.
- Capital expenditure increased significantly by 65% to $100.4 million, compared to the estimate of $83.1 million.
- Free cash flow totaled $1.06 billion, up 28% year over year, but fell short of the expected $1.28 billion.
- For the first quarter, KLA forecasts adjusted EPS in the range of $7.76 to $9.30, compared to an estimate of $8.17.
- KLA’s President and CEO, Rick Wallace, highlighted the company’s strong results as reflective of their role in supporting the AI infrastructure buildout within the semiconductor capital equipment sector.
- The stock is rated with 15 buys, 15 holds, and 1 sell by analysts.
KLA-Tencor Corp on Smartkarma
Analyst coverage of KLA-Tencor Corp on Smartkarma has been positive, with Baptista Research providing detailed insights into the company’s recent financial performance and market positioning. In their report titled “KLA Corporation: The 6 Most Significant Forces Steering Its Performance into 2025 & Beyond!“, Baptista Research highlights the strong financial results for the March quarter of 2025, with revenues exceeding expectations and driven by robust demand in key segments like advanced logic and high-bandwidth memory.
Furthermore, Baptista Research‘s analysis in “KLA Corporation: Inspection & Metrology Advancements To Possibly Disrupt the Market! – Major Drivers” underscores the company’s resilience and solid growth, particularly in the December 2024 quarter and the overall calendar year. KLA Corporation’s record revenue and notable growth in Process Control and Service businesses reflect a positive trajectory amidst a challenging industry backdrop, emphasizing their market share expansion and operational strength.
A look at KLA-Tencor Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
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 Smartkarma Smart Scores, KLA-Tencor Corp displays a promising long-term outlook. With strong scores in Growth, Resilience, and Momentum, the company is positioned for continued success in the semiconductor industry. A high Growth score indicates potential for expansion and increased market share, while a resilient operational model and positive Momentum suggest positive investor sentiment and stock performance.
KLA-Tencor Corporation, a leading manufacturer of yield management and process monitoring systems for the semiconductor sector, operates globally to offer innovative solutions in analyzing product quality and enhancing fabrication processes. Despite moderate ratings in Value and Dividend, the company’s strengths lie in its capacity for growth, operational resilience, and positive market momentum, signaling a favorable future outlook for investors seeking potential long-term value.
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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