What's Driving The Run Up In KLA Corporation's Stock? – Forbes
KLA Corporation – a company that supplies process control and yield management systems to the semiconductor and nano-electronics industries – has seen its stock price rise by 80% year-to-date, and by almost 30% over the last quarter. There are multiple factors driving the increase, including better than expected earnings over the last two quarters, and a positive outlook provided during the company’s investor day, conducted in September. The company has indicated that its revenues could grow to $7 billion by FY’23 (fiscal years end June), up from $4.6 billion in FY’19, with EPS projected to come in at between $14.50 – $15.50, up from $7.53 in 2019. The growth will be driven by entry into new end-markets, including Advanced Packaging and Printed Circuit Board and broader demand growth in the semiconductor industry from areas including 5G, cloud computing, machine learning, and connected/autonomous cars. Below, we take a look at how KLAC has fared in recent years and what the outlook could be like over the next 2 years.
View our interactive dashboard analysis on What’s Driving The Rally In KLA Corporation Stock?
How does KLA Corporation’s Revenue Growth in 2019 compare with that in prior periods and what’s the forecast?
Trefis
Total Revenues for KLA significantly increased from $4 Bil in 2018 to $4.6 Bil in 2019; an increase of 13.0%.
This compares with Total Revenues growth of:
We expect Total Revenues growth to be 20% in FY’20 driven by the full-year effects of the Orbotech acquisition, closed in February 2019.
How does KLA Corporation’s Total Expense in 2019 compare with that in prior periods and what’s the forecast?
Total Expense for KLA increased from $2.6 Bil in 2018 to $3.3 Bil in 2019; an increase of 27%. This was due to higher SG&A expenses and Cost of Revenues.
This compares with Total Expense growth of:
We expect Total Expense growth to be 10% in FY’20.
How does KLA Corporation’s EBT in 2019 compare with that in prior periods and what’s the forecast?
EBT for KLA declined from $1.5 billion in 2018 to $1.3 billion in 2019.
We expect EBT to increase by 46% to $1.9 Bil in 2020, driven by the acquisition of Orbotech.
How do KLA Corporation’s Net Income and EPS for 2019 compare with that in prior periods and what’s the forecast?
For more details on KLA Corporation’s Net Income and EPS, view our interactive dashboard analysis
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