KLA Corporation Stock Falls from an All-Time High on Weak Guidance
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Key Takeaways
KLA Corporation warned that the current quarter will be the low point of the year as it faces a challenging market environment.
The semiconductor equipment maker posted guidance that was below estimates, even as its quarterly results were better than expected.
Shares of KLA fell from their all-time high set yesterday.
Shares of KLA Corporation (
KLAC
) tumbled as the semiconductor equipment maker’s current quarter outlook was lower than expected on “challenging” market conditions.
The company anticipates fiscal third-quarter
earnings per share (EPS)
of $5.26 +/- $0.60, and revenue of $2.3 million +/- $125 million.
Both were below forecasts.
CFO Bren Higgins told analysts KLA faced the “challenges and complexity of the current industry environment.” CEO Rick Wallace added that the company expects the current quarter to be the “low point for the year,” with business to improve throughout 2024.
In its fiscal second quarter, KLA reported EPS of $6.16, with revenue of $2.49 billion. Both were about 17% lower than the year before, although they still exceeded estimates.
KLA Corporation shares were down 5.8% at $604.84 at around 3:00 p.m. ET Friday. The stock had reached an all-time high Thursday, and even with today’s losses they remain up more than 40% over the past year.
