KLA Corp projected revenue and profit for its fiscal first quarter above expectations after delivering stronger-than-anticipated results for the previous quarter on Wednesday. This led to a 3% increase in its shares during after-hours trading.
The growing demand for high-end chips driven by AI applications is benefiting KLA, along with other chip producers and ancillary suppliers. “We are encouraged by the early signs of a strengthening market environment for our customers at the leading edge and are increasingly confident in our plan for steady improvement throughout the remainder of this calendar year and into 2025,” said CEO Rick Wallace.
The chip-making equipment company anticipates revenue for the current quarter to be around $2.75 billion, plus or minus $150 million, surpassing analysts’ expectations of $2.62 billion. KLA also forecasted an adjusted earnings per share in the range with a midpoint of $7, exceeding the consensus estimate of $6.50.
Based in Milpitas, California, KLA manufactures tools for inspecting silicon wafer discs for defects, serving major chip producers like Taiwan Semiconductor Manufacturing Co and Samsung Electronics.
TSMC, the world’s largest contract chipmaker and a key industry indicator, raised its full-year revenue forecast last week, highlighting the growing demand for chips used in AI applications.
For the quarter ending June 30, KLA reported a revenue increase of just over 9% to $2.57 billion, beating expectations of $2.52 billion. The adjusted profit per share was $6.60, exceeding the anticipated $6.15.
KLA, which faces U.S. government restrictions on exports of certain technologies to China, noted that its revenue from the country increased to 44% from 30% a year ago, according to the company’s earnings presentation.
