KLA stock declines as part of forecast earnings range falls below Street consensus

KLA Corp. shares slipped in the extended session Thursday after the chip-equipment maker reported a big earnings beat but part of its forecast earnings range for the current quarter fell below the Wall Street consensus.

KLA shares
KLAC,
+2.45%

reported fiscal fourth-quarter net income of $805.4 million, or $5.40 a share, compared with $636 million, or $4.10 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $5.81 a share, compared with $4.43 a share in the year-ago period.

Milpitas, Calif.-based KLA’s revenue rose to $2.49 billion from $1.93 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast adjusted earnings of $5.50 a share on revenue of $2.43 billion, based on KLA’s forecast of $4.93 to $6.03 a share on revenue of $2.3 billion to $2.55 billion.

Shares slipped 2% after hours, following a 2.5% rise in the regular session to close at $369.98.

“Our consistent, strong execution against various challenges in the marketplace, both in terms of macro-economic uncertainty and in addressing persistent supply-chain issues, highlights the resiliency of the KLA operating model, the dedication of our global teams, and our commitment to delivering long-term value to our stakeholders,” said Rick Wallace, KLA chief executive, in a statement.

KLA forecast earnings of $5.70 to $6.80 a share on revenue of $2.48 billion to $2.73 billion for the fiscal first quarter. Analysts surveyed by FactSet estimated $5.83 a share on revenue of $2.51 billion for the first quarter.

Over the past 12 months, KLA shares have gained 17%, while the PHLX Semiconductor Index 
SOX,
+1.15%

has fallen 10% and the S&P 500 index 
SPX,
+1.21%

has declined 7.5%.

Late Wednesday, rival Lam Research Corp.
LRCX,
+3.69%

topped Wall Street estimates for the quarter and forecast an outlook that was mostly above consensus. Last week, ASML Holding NV
ASML,
+2.66%

lowered its revenue forecast for the year after the company said fast orders will push revenue recognition for those sales into next year.

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