MILPITAS, Calif. - KLA Corporation (NASDAQ:KLAC) reported a positive outcome in its third quarter, surpassing analyst expectations with an adjusted earnings per share (EPS) of $5.26, $0.23 higher than the $5.03 consensus.
The company's revenue also exceeded forecasts, reaching $2.36 billion against the anticipated $2.32 billion. This performance represents a robust financial showing for the quarter ending March 31, 2024, and reflects a 1.8% increase in stock value, signaling investor confidence in the company's results and future prospects.
KLA's revenue for the quarter not only beat the analyst consensus but also showed a significant increase from the same quarter last year, indicating sustained growth.
The company's guidance for the fourth quarter of 2024 is optimistic, projecting an adjusted EPS range of $5.47 to $6.67, which at its midpoint, is above the analyst estimate of $5.75. The forecasted revenue of $2.5 billion also surpasses the consensus estimate of $2.44 billion.
President and CEO Rick Wallace commented on the quarter's success, stating, "KLA's March quarter results were above our adjusted guidance as customer demand and company execution tracked consistent with our expectations."
He also noted the stabilization of market conditions and the anticipation of business improvement through the year, underpinned by positive discussions with customers about future investments.
The company's financial health is further underscored by its strong cash flow from operating activities, which amounted to $910.0 million for the quarter and $2.42 billion for the last nine months. Additionally, KLA's free cash flow stood at $838.2 million for the quarter, contributing to a total capital return of $569.4 million for the same period.
Looking ahead to the fourth quarter of fiscal 2024, KLA anticipates total revenues to be in the range of $2.50 billion, with an adjusted gross margin expected to be around 61.5%. The guidance provided by KLA suggests confidence in the company's continued performance and potential for growth, as reflected in the positive market response to the earnings announcement.
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