KLA Corp., a leading chip-equipment maker, saw its shares soar after hours on Thursday, following an impressive outlook and strong quarterly results that surpassed Wall Street expectations.
Strong Financial Performance
In the fiscal fourth quarter, KLA reported a net income of $684.7 million, or $4.97 per share, compared to $805.4 million, or $5.40 per share, in the same period last year. Adjusted earnings, which exclude stock-based compensation expenses and other items, stood at $5.40 per share, down from $5.81 per share in the prior year.
While the company experienced a decline in revenue from $2.49 billion to $2.36 billion year-over-year, it comfortably surpassed analysts’ estimates of adjusted earnings at $4.86 per share on revenue of $2.25 billion.
Market Reaction
Following the release of the impressive results, KLA’s stock surged 3% after hours, adding to the 5.4% gain during regular trading hours where it closed at $482.35.
Positive Future Outlook
KLA has forecasted earnings of $4.75 to $5.95 per share on revenue between $2.2 billion and $2.5 billion for the first quarter of the fiscal year. Analysts surveyed by FactSet had expected earnings of $4.75 per share on revenue of $2.23 billion for Q1.
Overall Market Performance
Year to date, KLA shares have increased by 28%, outperforming the PHLX Semiconductor Index (up 49%) and the S&P 500 index (up 18%).
The positive momentum in the chip-equipment industry has also been reflected in the upbeat results from Lam Research Corp., where chip-equipment suppliers have collectively rallied.
Read: Lam Research CEO: AI servers are ‘fundamental’ to driving growth in next several years
TechBerry
Happy Galaxy
Forex Cyborg
Forex Fury
FXgoodway