What happened
An encouraging fiscal Q4 report from KLA Corporation (KLAC +6.31%) released on Thursday is driving shares of the semiconductor technology name higher by 7.9% on Friday.
So what
Not every name in the business is being crimped by the current microchip shortage, or, for that matter, the lingering fallout from the COVID-19 pandemic. Revenue of $1.93 billion for the quarter ending in June was 32% higher than the year-ago numbers, while per-share earnings of $4.43 had grown 62% from the $2.73 reported for the fiscal fourth quarter of last year, when the contagion was first starting to spread worldwide. Analysts were modeling a profit of only $3.99 per share on sales of $1.87 billion.
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For the quarter currently underway, the company is forecasting revenue of between $1.92 billion and $2.12 billion and operating earnings of somewhere between $4.01 and $4.89. The analyst community is modeling an average of $1.92 billion and $4.13, respectively, the former of which would be a 29% improvement.
Now what
It's a breath of fresh air in a sea of bad news for the chip sector. Indeed, it's possible KLA is benefiting from a tight supply as customers scramble for any sort of solution to their technological component challenges.
This company's persistent growth, however, is still only half the story for prospective buyers. Just as compelling is KLA's board of directors' decision to up its present quarterly dividend payout by 17% while it also expands the organization's stock buyback program by $2 billion. Factor in the stock's mediocre performance since April -- it's roughly even with its April peak despite Friday's rally -- and shares are worth a shot for growth-seeking technology investors.
