Why KLA Shares Are Rising Today

KLA Corp KLAC shares are trading higher by around 5% after the company reported strong Q4 FY23 results yesterday, and several analysts raised the price target.

The company reported total revenues of $2.355 billion, beating the consensus of $2.260 billion. 

Adjusted EPS of $5.40 beat the consensus of $4.85.

As of FY23, operating cash flow stood at $3.67 billion.

Q1 FY24 Outlook: KLAC expects revenues of $2.35 billion (+/- $125 million) vs. consensus of $2.23 billion and adjusted EPS of $5.35 (+/- $0.60) vs. consensus of $4.74. 

"KLA's June quarter results exceeded expectations, demonstrating the combination of the broad strength of our portfolio, focused operational execution and high-performing teams coming together to deliver against our financial objectives in what remains a challenging demand environment. KLA continues to be focused on supporting our customer requirements while maintaining critical R&D investments to enable our technology roadmap. Our results are the latest example of successfully meeting or exceeding our commitments and creating value for our customers, partners and shareholders," said Rick Wallace, president and CEO. 

In response to strong earnings, Wells Fargo and JP Morgan raised the price target to $575 (from $500) and $560 (from $445), respectively, maintaining an Overweight rating.

Affirming an Underweight rating, Barclays upped the target to $425 from $400. 

Stifel analyst maintained the Buy and increased the price target from $450 to $535.

TD Cowen analyst raised the price target from $410 to $535, affirming Market Perform.

Susquehanna analyst, maintaining the Positive rating, raised the price target from $490 to $560.

Price Action: KLAC shares are trading up 5.5% at $508.90 on the last check Friday.