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Chip gear maker KLA's Q1 revenue beats analyst estimates on AI demand

By Reuters News


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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