KLA Corp. earnings outperform Street, shares fall after outlook

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KLA Corp. shares fell in the extended session Thursday after the lower end of the company’s earnings outlook range fell short of the Wall Street median estimate, even as quarterly results beat those estimates. KLA KLAC, + 0.47% shares decreased 1% after hours, following a 0.5% rise in the regular session to close at $ 326.36.

The company, which makes the instruments foundries use to make the silicon wafers used to make chips, reported fiscal third-quarter net income of $ 567.5 million, or $ 3.66 per share, compared to $ 78.5 million or 50 cents per share for the year. It makes point. Adjusted earnings, which exclude share-based compensation expenses and other items, were $ 3.85 per share, compared to $ 2.47 per share in the same period last year. Revenue increased to $ 1.8 billion from $ 1.42 billion in the prior year quarter. Analysts surveyed by FactSet had forecast $ 3.61 per revenue share of $ 1.75 billion, based on KLA’s forecast of $ 3.23 to $ 3.91 per revenue share of $ 1.67 billion to $ 1.82 billion. “We have seen strong increases in business levels in each of our major end markets, driven by secular demand trends in a wide range of semiconductor markets and applications,” said Rick Wallace, CEO of KLA, at a statement. KLA forecast fourth-quarter earnings of $ 3.47 to $ 4.35 per share on revenue of $ 1.76 billion to $ 1.96 billion, while analysts had estimated $ 3.66 per share on revenue. of $ 1.78 billion. Read: Semiconductor shortage is here to stay, but will affect chip companies differently In April, Lam Research Corp. LRCX, + 0.46% reported record results with quarterly earnings topping $ 1 billion for the first time. Chip equipment makers like KLA and Lam are poised for several quarters of strength to come as factories, or the manufacturing plants that make the silicon wafers used in semiconductors, develop their capacity amid a global microchip shortage. In the past 12 months, KLA shares have gained 86%, while the PHLX SOX semiconductor index, + 0.76%, was up 78% during that period. Similarly, the S&P 500 SPX Index, + 0.68%, was up 43%, and the high-tech Nasdaq Composite Index COMP gained 58%.