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KLA Corporation’s KLAC shares have gained 15.4% year to date, outperforming the broader Zacks Computer and Technology sector’s decline of 7.9% and the Electronics - Miscellaneous Products industry’s slip of 0.7%.
KLAC has also outperformed its industry peers, including Garmin GRMN, Flex FLEX and Rockwell Automation ROK, in the same period.
Year to date, Garmin shares have returned 1.9%, while Flex and Rockwell Automation declined 5.2% and 9.5%, respectively.
The momentum in KLAC shares is driven by robust growth at the leading edge, led by increased customer investments in AI and high-performance computing (HPC). Continued strength in advanced packaging, a resilient services segment and a differentiated portfolio position KLAC to capitalize on rising semiconductor demand, driving its stock performance.
KLA Corporation Price and Consensus
KLA Corporation price-consensus-chart | KLA Corporation Quote
KLAC’s Strong Portfolio Secures Competitive Advantage
KLA's differentiated portfolio is designed to address the escalating complexities in semiconductor manufacturing, effectively supporting customers amid rising global demand.
A significant contributor to this success is KLAC’s focus on advanced packaging solutions. The company's advanced packaging revenues grew to approximately $500 million in the calendar year 2024. The metric is projected to exceed $800 million in calendar 2025, reflecting strong demand in this segment.
A notable component of KLA's portfolio is its advanced inspection and metrology systems. These tools are critical for detecting and characterizing defects at the nanometer scale, ensuring the production of high-quality semiconductor devices. By providing precise measurements and analyses, KLAC’s systems help manufacturers maintain stringent quality standards.
KLA's Estimates Trend Upward
The Zacks Consensus Estimate for third-quarter fiscal 2025 revenues is pegged at $3.01 billion, indicating 27.40% year-over-year growth.
The Zacks Consensus Estimate for third-quarter fiscal 2025 non-GAAP earnings is pegged at $8.07 per share, unchanged over the past 30 days. This indicates growth of 53.42% on a year-over-year basis.
The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $11.91 billion, indicating year-over-year growth of 21.35%.
The consensus mark for fiscal 2025 earnings is pegged at $31.59 per share, unchanged over the past 30 days, implying a 33.07% year-over-year increase.
The company’s earnings beat the Zacks Consensus Estimate in the trailing three quarters, the average surprise being 6.35%.