U.S. Markets closed
  • S&P 500

    4,704.54
    +15.87 (+0.34%)
     
  • Dow 30

    35,870.95
    -60.10 (-0.17%)
     
  • Nasdaq

    15,993.71
    +72.14 (+0.45%)
     
  • Russell 2000

    2,363.59
    -13.42 (-0.56%)
     
  • Gold

    1,861.20
    -0.20 (-0.01%)
     
  • Silver

    24.88
    -0.02 (-0.08%)
     
  • EUR/USD

    1.1369
    -0.0006 (-0.0568%)
     
  • 10-Yr Bond

    1.5890
    -0.0150 (-0.94%)
     
  • Vix

    17.59
    +0.48 (+2.81%)
     
  • GBP/USD

    1.3497
    -0.0003 (-0.0216%)
     
  • USD/JPY

    114.3040
    +0.0520 (+0.0455%)
     
  • BTC-USD

    54,724.74
    +482.22 (+0.89%)
     
  • CMC Crypto 200

    1,402.14
    -65.80 (-4.48%)
     
  • FTSE 100

    7,255.96
    -35.24 (-0.48%)
     
  • Nikkei 225

    29,683.09
    +84.43 (+0.29%)
     

KLA Corp. (KLAC) Q3 Earnings Beat, Revenues Increase Y/Y

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

KLA Corporation KLAC reported third-quarter fiscal 2021 earnings of $3.85, which beat the Zacks Consensus Estimate by 7.2% and surged 56% year over year.

Revenues increased 26.7% year over year to $1.80 billion, surpassing the Zacks Consensus Estimate by 3.6%.

Products revenues (accounting for 76.2% of total revenues) increased 30.8% year over year to $1.38 billion.

Services revenues (23.8% of total revenues) increased 14.9% from the year-ago quarter to $428.5 million.

Quarter Details

In terms of reportable segments, Semiconductor Process Control revenues increased 28% year over year to $1.51 billion.

KLA Corporation Price, Consensus and EPS Surprise

KLA Corporation Price, Consensus and EPS Surprise
KLA Corporation Price, Consensus and EPS Surprise

KLA Corporation price-consensus-eps-surprise-chart | KLA Corporation Quote

Specialty Semiconductor Process revenues were $91.7 million, up 7.8% year over year.

PCB, Display and component inspection revenues jumped 28% year over year to $205.2 million.

Selling, General and Administrative (SG&A) expenses were $239 million, reflecting an 11% year-over-year increase. As a percentage of revenues, SG&A expenses decreased 190 basis points (bps) year over year to 13.2%.

Research and development (R&D) expenses were $183 million, down 1.5% year over year. As a percentage of revenues, R&D expenses decreased 290 bps year over year to 10.1%.

Balance Sheet

As of Mar 31, 2021, KLA had cash, cash equivalents and current marketable securities of $2.44 billion compared with $2.3 billion as of Dec 31, 2020.

Cash from operations was $646.2 million for the fiscal third quarter versus $561.1 million in the previous quarter.

During the quarter, the company paid $139.6 million in dividends and repurchased $273 million shares.

Guidance

For fourth-quarter fiscal 2021, revenues are expected between $1.755 million and $1.955 million.

KLA expects non-GAAP gross margin in the range of 61-63%.

Moreover, KLA expects earnings between $3.47 and $4.35 per share.

Zacks Rank & Stocks to Consider

KLA currently has a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader technology sector are CDW Corporation CDW, Cognex CGNX and EPAM Systems EPAM. All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CDW is set to report its quarterly earnings on May 5. Both Cognex and EPAM are scheduled to report the same on May 6.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

KLA Corporation (KLAC) : Free Stock Analysis Report

Cognex Corporation (CGNX) : Free Stock Analysis Report

EPAM Systems, Inc. (EPAM) : Free Stock Analysis Report

CDW Corporation (CDW) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research