Milpitas, California-based KLA Corporation (KLAC) designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries. Valued at $116.67 billion by market cap, the company provides advanced process control and process-enabling solutions for manufacturing wafers and reticles, integrated circuits, packaging, and printed circuit boards. The leading process control and yield management solutions provider is expected to announce its fiscal fourth-quarter earnings for 2024 after the market closes on Wednesday, July 24. 

Ahead of the event, analysts expect KLAC to report a profit of $6.08 per share on a diluted basis, up 12.6% from $5.40 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. In the previous quarter, KLAC revenues and non-GAAP EPS were above the midpoint of its guidance range.

For the full year, analysts expect KLAC to report EPS of $23.30, down 8.2% from $25.37 in fiscal 2023.

KLAC stock has outperformed the S&P 500’s ($SPX) 16.8% gains on a YTD basis, with shares up 50% during this period. Similarly, it outshined the S&P 500 Technology Sector SPDR’s (XLK) 22.4% gains over the same time frame.

On Apr. 25, KLAC reported its Q3 results. Its total revenues were $2.36 billion, beating the consensus estimates of $2.32 billion. The company’s adjusted EPS was $5.26, higher than Wall Street estimates of $5.06. KLAC expects fourth-quarter non-GAAP earnings between $5.47 and $6.67 per share. KLAC shares closed up more than 2% on the day the results were released and have been on an uptrend since then.

The consensus opinion on KLAC stock is bullish, with a “Moderate Buy” rating overall. Out of 24 analysts covering the stock, 13 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and 10 give a “Hold.” However, the average analyst price target for KLAC is $761.19, indicating a potential downside of 12.2% from the current levels. 

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On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.