KLA (NASDAQ:KLAC) Releases Earnings Results, Beats Estimates By $0.05 EPS

KLA (NASDAQ:KLAC) released its quarterly earnings data on Tuesday. The semiconductor company reported $1.05 EPS for the quarter, beating the consensus estimate of $1.00 by $0.05, FiscalAI reports. KLA had a return on equity of 91.89% and a net margin of 35.66%.The company had revenue of $3.66 billion for the quarter, compared to analysts’ expectations of $3.61 billion. KLA updated its Q1 2027 guidance to 1.060-1.260 EPS.

KLA Trading Down 6.2%

Shares of NASDAQ KLAC traded down $12.56 during midday trading on Tuesday, hitting $190.80. The company’s stock had a trading volume of 16,962,377 shares, compared to its average volume of 11,562,541. The company has a current ratio of 3.03, a quick ratio of 2.11 and a debt-to-equity ratio of 1.01. The business’s 50 day moving average is $223.91 and its two-hundred day moving average is $180.56. KLA has a 12-month low of $83.22 and a 12-month high of $307.37. The firm has a market cap of $249.24 billion, a P/E ratio of 54.01, a price-to-earnings-growth ratio of 2.00 and a beta of 1.41.

KLA Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 2nd. Stockholders of record on Monday, May 18th were issued a $0.23 dividend. This represents a $0.92 annualized dividend and a dividend yield of 0.5%. The ex-dividend date was Monday, May 18th. KLA’s dividend payout ratio is presently 26.06%.

KLA News Roundup

Here are the key news stories impacting KLA this week:

• Positive Sentiment: KLA reported fiscal fourth-quarter revenue of $3.66 billion, above the midpoint of its forecast. GAAP diluted EPS of $1.04 and non-GAAP diluted EPS of $1.05 both reached the upper end of guidance. Full-year operating cash flow was $4.14 billion, free cash flow was $3.77 billion, and the company returned $3.35 billion to shareholders. KLA Corporation Reports Fiscal 2026 Fourth Quarter and Full Year Results
• Positive Sentiment: For fiscal first-quarter 2027, KLA forecast revenue of $3.8 billion to $4.2 billion, with a midpoint above the $3.9 billion analyst consensus. EPS guidance of $1.06 to $1.26 also has a midpoint slightly above consensus, suggesting continued demand for process-control equipment despite a wide range.
• Neutral Sentiment: Brokerages maintain an average “Moderate Buy” rating, while investor commentary highlights KLA’s strong results and exposure to semiconductor process-control demand. However, valuation remains a key consideration after the stock’s substantial advance over the past year. KLA Given Average Recommendation of Moderate Buy
• Negative Sentiment: Chip-equipment stocks broadly declined after reports that China is mass-producing domestic DUV lithography tools. The development raises concern about longer-term competition and reduced equipment demand in China, weighing on KLA alongside ASML, Applied Materials, and Lam Research. ASML Stock Plunges as China Announces Domestic DUV Lithography Production
• Negative Sentiment: Put-option purchases rose approximately 64% above average, signaling increased demand for downside protection or bearish speculation around the earnings release.

Insider Buying and Selling

In other KLA news, EVP Mary Beth Wilkinson sold 14,392 shares of the company’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $285.30, for a total value of $4,106,037.60. Following the completion of the sale, the executive vice president directly owned 53,367 shares in the company, valued at approximately $15,225,605.10. This represents a 21.24% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Richard P. Wallace sold 45,120 shares of the stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $221.34, for a total transaction of $9,986,725.44. Following the transaction, the chief executive officer owned 713,830 shares in the company, valued at approximately $157,996,990.71. This represents a 5.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 132,333 shares of company stock valued at $29,547,170 in the last 90 days. Company insiders own 91.48% of the company’s stock.

Hedge Funds Weigh In On KLA

A number of large investors have recently added to or reduced their stakes in the company. Russell Investments Group Ltd. lifted its position in KLA by 31.4% during the fourth quarter. Russell Investments Group Ltd. now owns 91,413 shares of the semiconductor company’s stock valued at $111,910,000 after acquiring an additional 21,850 shares during the last quarter. Captrust Financial Advisors raised its stake in shares of KLA by 237.8% in the fourth quarter. Captrust Financial Advisors now owns 17,055 shares of the semiconductor company’s stock worth $20,723,000 after purchasing an additional 12,006 shares during the last quarter. Guardian Wealth Management Inc. acquired a new stake in KLA during the 4th quarter valued at approximately $209,000. Abound Financial LLC purchased a new stake in KLA in the fourth quarter valued at $241,000. Finally, Arkadios Wealth Advisors grew its position in KLA by 5.0% during the 4th quarter. Arkadios Wealth Advisors now owns 2,601 shares of the semiconductor company’s stock worth $3,160,000 after purchasing an additional 125 shares during the period. 86.65% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

KLAC has been the topic of a number of recent analyst reports. Citigroup reaffirmed a “buy” rating on shares of KLA in a report on Wednesday, June 17th. Wells Fargo & Company reissued an “overweight” rating and set a $305.00 price target (up from $210.00) on shares of KLA in a report on Monday, June 22nd. UBS Group set a $240.00 price objective on shares of KLA and gave the stock a “neutral” rating in a research note on Monday, July 20th. Cantor Fitzgerald set a $325.00 target price on KLA and gave the company an “overweight” rating in a research note on Monday, June 29th. Finally, Oppenheimer reissued an “outperform” rating and set a $260.00 price target (up from $200.00) on shares of KLA in a research note on Thursday, July 16th. Twenty equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $218.41.

About KLA

KLA is a provider of process control and yield management solutions for the semiconductor and related microelectronics industries. The company designs and manufactures equipment, software and services used by chipmakers to analyze and control manufacturing processes, detect defects, measure critical dimensions and improve yield across wafer fabrication, photomask and packaging operations. KLA’s offerings are aimed at enabling production of advanced logic, memory, and specialty devices at progressively smaller technology nodes and more complex package structures.

Its product portfolio includes optical and e-beam inspection systems, metrology tools for critical dimension and film measurement, mask and reticle inspection platforms, as well as enterprise software and data analytics that aggregate process data and drive automated process control.