KLA (NASDAQ:KLAC) Updates Q1 2027 Earnings Guidance

KLA (NASDAQ:KLAC) updated its first quarter 2027 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 1.060-1.260 for the period, compared to the consensus EPS estimate of 1.130. The company issued revenue guidance of $3.8 billion-$4.2 billion, compared to the consensus revenue estimate of $3.9 billion.

Analyst Ratings Changes

A number of research analysts recently issued reports on KLAC shares. Sanford C. Bernstein raised their target price on shares of KLA from $187.50 to $197.50 and gave the company an “outperform” rating in a research note on Wednesday, May 20th. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $175.00 price target on shares of KLA in a report on Thursday, April 30th. Bank of America raised their price target on KLA from $210.00 to $317.00 and gave the company a “buy” rating in a research report on Tuesday, June 23rd. Oppenheimer reiterated an “outperform” rating and issued a $260.00 price objective (up from $200.00) on shares of KLA in a research note on Thursday, July 16th. Finally, BNP Paribas Exane boosted their price objective on KLA from $155.00 to $170.00 and gave the stock a “neutral” rating in a research report on Thursday, April 30th. Twenty investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $218.41.

KLA Stock Performance

KLA stock traded down $12.56 during mid-day trading on Tuesday, reaching $190.80. The company had a trading volume of 16,568,553 shares, compared to its average volume of 11,531,849. The company has a quick ratio of 2.11, a current ratio of 3.03 and a debt-to-equity ratio of 1.01. KLA has a 52 week low of $83.22 and a 52 week high of $307.37. The company has a 50 day moving average of $223.91 and a 200-day moving average of $180.56. The firm has a market cap of $249.24 billion, a price-to-earnings ratio of 54.01, a PEG ratio of 2.00 and a beta of 1.41.

KLA (NASDAQ:KLAC) last posted its quarterly earnings data on Tuesday, July 28th. The semiconductor company reported $1.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.00 by $0.05. The company had revenue of $3.66 billion for the quarter, compared to the consensus estimate of $3.61 billion. KLA had a net margin of 35.66% and a return on equity of 91.89%. KLA has set its Q1 2027 guidance at 1.060-1.260 EPS. On average, sell-side analysts expect that KLA will post 3.71 EPS for the current fiscal year.

KLA Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Monday, May 18th were paid a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a yield of 0.5%. The ex-dividend date was Monday, May 18th. KLA’s payout ratio is currently 26.06%.

Insider Buying and Selling at KLA

In other KLA news, EVP Mary Beth Wilkinson sold 14,392 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $285.30, for a total value of $4,106,037.60. Following the completion of the transaction, the executive vice president owned 53,367 shares of the company’s stock, valued at $15,225,605.10. This represents a 21.24% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Bren D. Higgins sold 27,701 shares of the firm’s stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $265.69, for a total value of $7,359,878.69. Following the completion of the sale, the chief financial officer owned 263,472 shares of the company’s stock, valued at $70,001,875.68. This represents a 9.51% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 132,333 shares of company stock valued at $29,547,170 in the last quarter. Corporate insiders own 91.48% of the company’s stock.

Key Stories Impacting KLA

Here are the key news stories impacting KLA this week:

• Positive Sentiment: KLA reported fiscal fourth-quarter revenue of $3.66 billion, above the midpoint of its forecast. GAAP diluted EPS of $1.04 and non-GAAP diluted EPS of $1.05 both reached the upper end of guidance. Full-year operating cash flow was $4.14 billion, free cash flow was $3.77 billion, and the company returned $3.35 billion to shareholders. KLA Corporation Reports Fiscal 2026 Fourth Quarter and Full Year Results
• Positive Sentiment: For fiscal first-quarter 2027, KLA forecast revenue of $3.8 billion to $4.2 billion, with a midpoint above the $3.9 billion analyst consensus. EPS guidance of $1.06 to $1.26 also has a midpoint slightly above consensus, suggesting continued demand for process-control equipment despite a wide range.
• Neutral Sentiment: Brokerages maintain an average “Moderate Buy” rating, while investor commentary highlights KLA’s strong results and exposure to semiconductor process-control demand. However, valuation remains a key consideration after the stock’s substantial advance over the past year. KLA Given Average Recommendation of Moderate Buy
• Negative Sentiment: Chip-equipment stocks broadly declined after reports that China is mass-producing domestic DUV lithography tools. The development raises concern about longer-term competition and reduced equipment demand in China, weighing on KLA alongside ASML, Applied Materials, and Lam Research. ASML Stock Plunges as China Announces Domestic DUV Lithography Production
• Negative Sentiment: Put-option purchases rose approximately 64% above average, signaling increased demand for downside protection or bearish speculation around the earnings release.

Institutional Investors Weigh In On KLA

Institutional investors have recently bought and sold shares of the business. Triumph Capital Management bought a new stake in KLA in the 3rd quarter valued at $40,000. WFA of San Diego LLC bought a new position in shares of KLA during the 2nd quarter worth about $90,000. Guardian Wealth Management Inc. acquired a new stake in shares of KLA during the 4th quarter valued at about $209,000. Martingale Asset Management L P acquired a new stake in shares of KLA during the 4th quarter valued at about $208,000. Finally, Abound Financial LLC bought a new stake in KLA in the fourth quarter valued at about $241,000. Institutional investors and hedge funds own 86.65% of the company’s stock.

About KLA

KLA is a provider of process control and yield management solutions for the semiconductor and related microelectronics industries. The company designs and manufactures equipment, software and services used by chipmakers to analyze and control manufacturing processes, detect defects, measure critical dimensions and improve yield across wafer fabrication, photomask and packaging operations. KLA’s offerings are aimed at enabling production of advanced logic, memory, and specialty devices at progressively smaller technology nodes and more complex package structures.

Its product portfolio includes optical and e-beam inspection systems, metrology tools for critical dimension and film measurement, mask and reticle inspection platforms, as well as enterprise software and data analytics that aggregate process data and drive automated process control.