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Valued at around $106 billion by market cap, California-based KLA Corporation (KLAC) is a global leader in driving innovation across the electronics industry. Through cutting-edge process control solutions, KLA enables the manufacturing of wafers, integrated circuits, and printed circuit boards. Collaborating closely with top customers worldwide, KLA’s expert teams of physicists, engineers, and data scientists develop technologies that help to shape the future of electronics. The company is slated to disclose its fiscal 2025 Q1 earnings release on Wednesday, Oct. 23.
Ahead of this event, analysts project the semiconductor giant to report a profit of $7.03 per share, reflecting a notable 22.5% jump from $5.74 per share registered in the year-ago quarter. Even more impressive is the company’s solid track record of consistently surpassing Wall Street's bottom-line estimates in the last four quarterly reports. In the most recent quarter, KLA posted an adjusted EPS of $6.60, surpassing the consensus estimate by a solid 8.6% margin.
Over the longer term, analysts tracking KLA project the company to report a profit of $29.19 per share in fiscal 2025, up nearly 23% year over year from $23.74 per share recorded in fiscal 2024. And looking forward to fiscal 2026, profit is expected to soar another 12.1% annually to $32.72 per share.
Over the past year, shares of this chip giant have rallied almost 70.8%, crushing the modest 34.9% gain of the broader S&P 500 Index ($SPX) and also blew past the iShares Semiconductor ETF’s (SOXX) return of 46.8% during the same time frame.
KLA exceeded expectations with its Q4 earnings report on July 24, sparking gains over the next two consecutive trading sessions. The company not only surpassed Wall Street’s profit estimates but also delivered a total revenue of $2.6 billion, beating analysts' forecasts of $2.5 billion, reinforcing its strong market position.
Furthermore, KLA generated strong cash flow during the quarter, with $892.6 million from operating activities and free cash flow reaching $831.9 million. Capital returns were equally impressive, totaling $667.8 million for the quarter, highlighting KLA’s commitment to delivering value to shareholders.
Analysts' consensus view on KLA Corporation stock is optimistic, with a "Moderate Buy" rating overall. Out of 26 analysts covering the stock, 14 suggest a "Strong Buy," one advises "Moderate Buy," and 11 recommend a "Hold." This configuration is slightly more bullish than three months ago, with 13 analysts suggesting a "Strong Buy." The average analyst price target for KLAC is $864.04, suggesting a potential upside of 9.7% from current levels.
On the date of publication, Anushka Mukherjee did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
