KLA Corporation (KLAC) Reports Earnings Tomorrow. What To Expect

Semiconductor manufacturing equipment maker KLA Corporation (NASDAQ:KLAC) will be reporting results tomorrow after the bell. Here's what to expect.

Last quarter KLA Corporation reported revenues of $2.49 billion, down 16.7% year on year, beating analyst revenue expectations by 1.1%. It was a mixed quarter for the company, with a solid beat of analysts' EPS estimates but underwhelming revenue guidance for the next quarter.

Is KLA Corporation buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting KLA Corporation's revenue to decline 4.6% year on year to $2.32 billion, a deceleration on the 6.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.06 per share. KLA Corporation Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.3%.

Looking at KLA Corporation's peers in the semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. SMART's revenues decreased 26.7% year on year, missing analyst estimates by 0.1% and Texas Instruments reported revenue decline of 16.4% year on year, exceeding estimates by 1.4%. SMART traded down 24.1% on the results, and Texas Instruments was up 5.5% on the results.

Read our full analysis of SMART's results here and Texas Instruments's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation d ata,and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 4.5% over the last month. KLA Corporation is down 5.3% during the same time, and is heading into the earnings with analyst price target of $696.4, compared to share price of $652.02.

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