The 10-second takeaway
For the quarter ended Dec. 31 (Q2), KLA-Tencor beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped.
Margins shrank across the board.
KLA-Tencor logged revenue of $673.0 million. The 14 analysts polled by S&P Capital IQ hoped for a top line of $633.5 million on the same basis. GAAP reported sales were 4.8% higher than the prior-year quarter's $642.5 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 $0.63. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.57 per share. GAAP EPS of $0.63 for Q2 were 4.5% lower than the prior-year quarter's $0.66 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 54.8%, 270 basis points worse than the prior-year quarter. Operating margin was 22.8%, 200 basis points worse than the prior-year quarter. Net margin was 15.8%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $700.0 million. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $2.81 billion. The average EPS estimate is $3.14.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 252 members out of 284 rating the stock outperform, and 32 members rating it underperform. Among 91 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 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 $53.29.
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