KLAC Earnings Prediction
The chart below shows how KLAC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KLAC sees a -0.02% change in stock price 10 days leading up to the earnings, and a +1.81% change 10 days following the report. On the earnings day itself, the stock moves by +0.40%. This data can give you a slight idea of what to expect for the next quarter's release.
KLAC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.57B
9.07%
8.85%
Gross Margin
62.56%
2.42%
4.56%
Operating Margin
39.94%
8.03%
10.55%
Net Margin
32.56%
12.01%
27.74%
EPS
6.17
24.14%
39.28%
No Data Available
KLAC Earnings Analysis
KLA Corp Corporation (KLAC.O) Earnings Conference Call
Positive
Record Revenue Growth: 2024 revenue grew 12% to a record $10,850,000,000, with process control revenue also increasing by over 12%, indicating market share growth.
Services Revenue Growth: Services business revenue grew 15% to $2,500,000,000 for the year, demonstrating strong demand and consistent performance.
Strong Profitability Margins: KLA maintained industry-leading gross and operating margins at 61% and 41% respectively, reflecting strong profitability.
Free Cash Flow Increase: Free cash flow increased to $3,400,000,000, with a quarterly free cash flow of $757,000,000, representing a 31% free cash flow margin.
Capital Return to Shareholders: Total capital return for the year was $2,900,000,000, including $650,000,000 in share repurchases and $227,000,000 in dividends, highlighting a commitment to returning value to shareholders.
Negative
Revenue Impact from Export Controls: KLA Corporation expects a revenue impact of approximately $500 million from recent U.S. export controls, with about 70% of this impact affecting the systems business, indicating significant headwinds for future revenue growth.
China Revenue Decline: The company's revenue from China is projected to decline by around 20% year-over-year, dropping from 41% of total business to approximately 29%, reflecting a substantial reduction in market presence in a key region.
Rising Operating Expenses: Operating expenses for the March quarter are forecasted to be approximately $585 million, with expected sequential increases of about $15 million per quarter, indicating rising costs that could pressure margins.
Services Business Growth Outlook: The services business is anticipated to grow in the high single digits for calendar 2025, which is below the long-term growth model, suggesting a slowdown in this segment's performance.
Backlog Decline and Challenges: KLA's remaining backlog was down by about $900 million, primarily due to deep bookings affected by recent regulations, indicating potential challenges in future revenue recognition.
KLAC FAQs
How does KLAC typically perform around its earnings report dates?
Is KLA Corp (KLAC) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
KLAC Earning Call Sentiment
Earnings call transcript: KLA Corp Q4 2024 beats estimates, stock dips slightly
KLAC.O
1.87%Positive
Despite strong financial performance and shareholder returns, concerns over competitive pressures, supply chain challenges, and the impact of U.S. export controls on revenue create a mixed outlook. The Q&A reveals management's evasiveness on certain growth aspects, adding uncertainty. Positive factors like growth in advanced packaging and service revenue are offset by potential revenue hits from China. Overall, the sentiment is balanced, leading to a neutral stock price prediction.
