The 10-second takeaway
For the quarter ended March 31 (Q3), KLA-Tencor beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share dropped.
Margins dropped across the board.
KLA-Tencor logged revenue of $840.5 million. The 16 analysts polled by S&P Capital IQ foresaw sales of $800.0 million on the same basis. GAAP reported sales were 0.8% higher than the prior-year quarter's $834.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.27. The 15 earnings estimates compiled by S&P Capital IQ predicted $1.10 per share. GAAP EPS of $1.21 for Q3 were 0.8% lower than the prior-year quarter's $1.22 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.7%, 300 basis points worse than the prior-year quarter. Operating margin was 33.8%, 360 basis points worse than the prior-year quarter. Net margin was 24.4%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $852.4 million. On the bottom line, the average EPS estimate is $1.27.
Next year's average estimate for revenue is $3.11 billion. The average EPS estimate is $4.46.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 256 members out of 289 rating the stock outperform, and 33 members rating it underperform. Among 83 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give KLA-Tencor a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KLA-Tencor is outperform, with an average price target of $57.06.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.