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Earnings Results: KLA beats on earnings, but confirms supply-chain concerns for chip-equipment companies

KLA Corp. shares ticked higher in the extended session Thursday after the chip-equipment maker’s quarterly results topped Wall Street estimates, but the forecast confirmed a supply-constrained environment that was also cited by rivals.


shares were up less than 1% after hours, following a 5.7% gain in the regular session to close at $332.76. The chip sector rallied Thursday, outpacing broader market gains as the PHLX Semiconductor Index

rose 5.6%, compared with a 2.5% gain on the S&P 500 index

Milpitas, Calif.-based KLA reported fiscal third-quarter net income of $730.6 million, or $4.83 a share, compared with $567.5 million, or $3.66 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $5.13 a share, compared with $3.85 a share in the year-ago period.

Read: Why semiconductor stocks are ‘almost uninvestable’ despite record earnings amid a global shortage

Revenue rose to $2.29 billion from $1.8 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast adjusted earnings $4.82 a share on revenue of $2.2 billion, based on KLA’s forecast of $4.35 to $5.25 a share on revenue of $2.1 billion to $2.3 billion.

“The demand environment for KLA products and solutions remains robust amidst a persistently challenging supply chain landscape, and we are focused on navigating this environment to consistently meet customer commitments and delivering on our long-term strategic objectives and financial targets,” said Rick Wallace, KLA chief executive, in a statement.

Read: The pandemic PC boom is over, but its legacy will live on

KLA forecast earnings that straddled the analyst consensus, $4.93 to $6.03 a share on revenue of $2.3 billion to $2.55 billion in the fiscal fourth quarter. Analysts surveyed by FactSet had estimated $5.32 a share on revenue of $2.36 billion for the fiscal fourth quarter.

Last week, rivals Lam Research Corp.

and ASML Holding NV

both reported that supply constraints were holding back sales in a high-demand market.

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