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Earnings Results: KLA Corp. posts beat-and-raise quarter like others in the chip-equipment sector as long-term goals underscored

KLA Corp. rose in the extended session Wednesday after it became the third chipmaking-equipment manufacturer to post a beat-and-raise quarter this earnings season amid a quarter rife with profit warnings from other chip-related companies.

KLA
KLAC,
+0.50%

shares rose as much as 5% after hours, and were last up 2.6%, following a 0.5% rise to close at $306.40.

The company reported fiscal first-quarter net income of $1.03 billion, or $7.20 a share, compared with $1.07 billion, or $6.96 a share, in the year-ago period. KLA reported adjusted earnings, which exclude stock-based compensation expenses and other items, of $7.06 a share, compared with $4.64 a share in the year-ago period.

Milpitas, Calif.-based KLA’s revenue rose to $2.72 billion from $2.08 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast adjusted earnings of $6.22 a share on revenue of $2.6 billion, based on KLA’s forecast of $5.70 to $6.80 a share on revenue of $2.48 billion to $2.73 billion.

“Despite signs of weakness across a broad set of electronics end markets and an increasingly challenging macro-economic backdrop, our December quarter outlook for sequential growth underscores the resiliency of our business and the strong demand for our critical products and services,” said Rick Wallace, KLA chief executive, in a statement.

KLA forecast earnings of $6.30 to $7.70 a share on revenue of $2.65 billion to $2.95 billion for the fiscal second quarter. Analysts surveyed by FactSet estimated $6.11 a share on revenue of $2.56 billion for the second quarter.

Last week, rivals Lam Research Corp.
LRCX,
+1.51%

and ASML Holding NV 
ASML,
-0.40%

both reported beat-and-raise quarters showing strength in the chipmaking-equipment manufacturing sector.

Year-to-date, KLA shares have fallen 29%, while the PHLX Semiconductor Index 
SOX,
-1.18%

 has dropped 40% and the S&P 500 index 
SPX,
-0.74%

has declined 20%.

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