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Market Overview

Earnings Outlook For KLA

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KLA (NASDAQ:KLAC) announces its next round of earnings this Thursday, April 29. Here is Benzinga's look at KLA's Q3 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering KLA modeled for quarterly EPS of $3.6 on revenue of $1.75 billion. KLA EPS in the same period a year ago totaled $2.47. Revenue was $1.42 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release.
When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Thursday, quarterly profit would be up 45.75%. Revenue would be up 22.89% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2021 Q1 2020 Q4 2020 Q3 2020
EPS Estimate 3.19 2.77 2.41 2.28
EPS Actual 3.24 3.03 2.73 2.47
Revenue Estimate 1.60 B 1.49 B 1.41 B 1.39 B
Revenue Actual 1.65 B 1.54 B 1.46 B 1.42 B

eps graph

Stock Performance

Shares of KLA were trading at $330.49 as of April 27. Over the last 52-week period, shares are up 100.5%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. KLA is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings