Chip gear maker KLA's Q1 revenue beats analyst estimates on AI demand
Overview
US semiconductor equipment maker's fiscal Q1 revenue rose, beating analyst expectations
Adjusted EPS for fiscal Q1 increased to $1.22
Company cites AI ecosystem buildout and advanced packaging demand as growth drivers
Outlook
KLA expects Q2 revenue of $4.7 bln +/- $200 mln
Company sees Q2 GAAP diluted EPS of $1.41 +/- $0.11
KLA forecasts Q2 non-GAAP gross margin of 62.5% +/- 1.0%
Result Drivers
AI ECOSYSTEM BUILDOUT - Co said process control remains critical to AI ecosystem buildout, benefiting from increases in leading-edge designs, device size and value, memory complexity and performance requirements
TECHNOLOGY TRANSITIONS - Co said process, PCB, and component inspection businesses benefited from technology transitions and rigorous performance requirements of high-performance computing
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $4.14 bln | $4.04 bln (19 Analysts) |
Q1 Adjusted EPS | $1.22 | ||
Q1 EPS | $1.18 | ||
Q1 Net Income | $1.55 bln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductor equipment & testing peer group is "buy"
Wall Street's median 12-month price target for KLA Corporation is $227.00, about 47.7% above its October 27 closing price of $153.66
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 59 three months ago
Reuters Recommended Reads
Oct 27 - Netherlands' ASM International Q3 revenue jumps on strong growth in memory sales
Oct 28 - Chip tool maker ASM expects to exceed 2027 sales goal on strong AI demand, CEO says
Oct 27 - Netherlands' NXP Semiconductors Q3 revenue rises 19%, slightly beats estimates
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)