Semiconductor equipment maker KLA is the latest chip gear firm to disappoint the Street with its guidance this earnings season. KLAC stock initially dropped on the news, but ended Friday in positive territory.
The Milpitas, Calif.-based company late Thursday posted better-than-expected December-quarter results but undershot views with its outlook. It earned an adjusted $5.59 a share on sales of $2.35 billion in its fiscal second quarter ended Dec. 31. Analysts had expected earnings of $5.45 a share on sales of $2.33 billion, according to FactSet. On a year-over-year basis, KLA earnings rose 73% while sales climbed 43%.
For the current quarter, KLA expects to earn an adjusted $4.80 a share on sales of $2.2 billion. That's based on the midpoint of its outlook. However, analysts were looking for earnings of $5.50 a share on sales of $2.37 billion in the March quarter, FactSet said.
"KLA's December quarter and calendar 2021 performance exceeded our expectations in a demanding and challenging environment," Chief Executive Rick Wallace said in a news release.
KLAC Stock Sinks
On the stock market today, KLAC stock rose 1.3% to close at 366.65.
KLA's disappointing outlook follows similar reports from industry peers Lam Research, MKS Instruments and Teradyne.
Last week, ASML forecast sales of $3.86 billion for the current quarter when analysts were predicting $6.07 billion. ASML stock tumbled on the news.
Like its peers, KLA blamed supply chain constraints for its weak March-quarter guidance. The company is facing shortages of numerous electronic components. KLA's issues also included workplace disruptions at its suppliers caused by the Covid pandemic.
KLAC stock is on the IBD 50 list of top-performing growth stocks. It's also on IBD's Big Cap 20 and Sector Leaders watchlists.
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