KLA (NASDAQ:KLAC – Get Free Report) issued an update on its first quarter 2027 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 1.060-1.260 for the period, compared to the consensus EPS estimate of 1.130. The company issued revenue guidance of $3.8 billion-$4.2 billion, compared to the consensus revenue estimate of $3.9 billion.
KLA Price Performance
KLAC stock traded down $12.57 during midday trading on Wednesday, reaching $178.23. 7,013,331 shares of the company’s stock traded hands, compared to its average volume of 11,527,559. The company has a quick ratio of 2.11, a current ratio of 3.03 and a debt-to-equity ratio of 1.01. The company has a market cap of $232.82 billion, a price-to-earnings ratio of 50.40, a PEG ratio of 1.93 and a beta of 1.41. The company has a 50-day simple moving average of $224.25 and a two-hundred day simple moving average of $180.95. KLA has a 1-year low of $83.22 and a 1-year high of $307.37.
KLA (NASDAQ:KLAC – Get Free Report) last announced its earnings results on Tuesday, July 28th. The semiconductor company reported $1.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.00 by $0.05. The company had revenue of $3.66 billion for the quarter, compared to analyst estimates of $3.61 billion. KLA had a net margin of 35.66% and a return on equity of 91.89%. KLA’s quarterly revenue was up 15.2% on a year-over-year basis. During the same period in the prior year, the business earned $0.94 earnings per share. KLA has set its Q1 2027 guidance at 1.060-1.260 EPS. On average, analysts anticipate that KLA will post 3.71 earnings per share for the current year.
KLA Cuts Dividend
Analyst Ratings Changes
KLAC has been the topic of several research analyst reports. Wells Fargo & Company set a $245.00 price objective on KLA in a research note on Wednesday. UBS Group set a $240.00 price target on shares of KLA and gave the company a “neutral” rating in a report on Monday, July 20th. Barclays restated an “overweight” rating and set a $225.00 price objective on shares of KLA in a report on Monday, July 20th. Cantor Fitzgerald reiterated an “overweight” rating and set a $325.00 target price on shares of KLA in a report on Wednesday. Finally, JPMorgan Chase & Co. boosted their price target on KLA from $200.00 to $238.00 and gave the company an “overweight” rating in a report on Wednesday. Twenty investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company’s stock. Based on data from MarketBeat, KLA presently has a consensus rating of “Moderate Buy” and a consensus target price of $218.75.
Check Out Our Latest Research Report on KLAC
Insider Buying and Selling
In other news, EVP Mary Beth Wilkinson sold 14,392 shares of the business’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $285.30, for a total transaction of $4,106,037.60. Following the transaction, the executive vice president directly owned 53,367 shares in the company, valued at $15,225,605.10. The trade was a 21.24% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 firm’s stock in a transaction dated 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 completion of the sale, the chief executive officer owned 713,830 shares of the company’s stock, valued at $157,996,990.71. This trade represents a 5.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 132,333 shares of company stock worth $29,547,170. Insiders own 91.48% of the company’s stock.
KLA News Roundup
Here are the key news stories impacting KLA this week:
- Positive Sentiment: AI demand supports growth: Management cited sustained investment in AI infrastructure, stronger semiconductor demand and expanding process-control opportunities as drivers of future growth. KLAC Q4 Earnings Call Highlights AI Infrastructure Growth Outlook
- Positive Sentiment: Results exceeded expectations: Fiscal fourth-quarter revenue rose 15.2% year over year to approximately $3.66 billion, while non-GAAP EPS of $1.05 topped the roughly $1.00 consensus estimate. Operating cash flow was $906.4 million, and fiscal-year free cash flow reached $3.77 billion. KLA Fiscal 2026 Fourth-Quarter Results
- Positive Sentiment: Analysts remain constructive: JPMorgan raised its price target to $238 and assigned an Overweight rating; Needham reaffirmed Buy at $270; Cantor Fitzgerald maintained Overweight with a $325 target; and Citi reiterated Buy with a $290 target. KLA Strong Beat and Improved WFE Outlook
- Neutral Sentiment: Guidance was broadly upbeat but mixed: First-quarter fiscal 2027 revenue guidance of $3.8 billion to $4.2 billion had a midpoint above consensus, while EPS guidance of $1.06 to $1.26 had a midpoint above estimates but a low end below them.
- Negative Sentiment: Investors viewed the beat as too narrow: Commentary described the results as a “skinny” beat and suggested KLA’s growth could be constrained, even with the improved forecast. Concerns include competition, potential margin pressure and semiconductor capital-spending trends. KLA Stock Heads for Worst Month Since 1987
- Negative Sentiment: Broader sector selling amplified the reaction: Chip-equipment stocks weakened alongside KLA, making the decline appear partly driven by industry-wide risk reduction rather than a deterioration in current operating results. KLA’s elevated earnings multiple also leaves less room for disappointment.
- Negative Sentiment: Bearish positioning increased: Investors purchased 12,634 put options, 64% above average daily put volume. Separately, three KLA insiders—including the CEO and CFO—reported stock sales over the past six months, with no reported purchases.
Institutional Trading of KLA
A number of hedge funds have recently modified their holdings of the stock. Triumph Capital Management bought a new position in KLA in the 3rd quarter valued at about $40,000. WFA of San Diego LLC bought a new stake in KLA in the 2nd quarter valued at $90,000. Martingale Asset Management L P acquired a new position in KLA in the 4th quarter valued at $208,000. Guardian Wealth Management Inc. acquired a new stake in shares of KLA during the fourth quarter worth $209,000. Finally, Abound Financial LLC bought a new position in KLA during the fourth quarter worth about $241,000. Institutional investors and hedge funds own 86.65% of the company’s stock.
KLA Company Profile
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.
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