On July 24, 2024, KLA Corp (KLAC, Financial) released its 8-K filing reporting financial results for the fourth quarter and fiscal year ended June 30, 2024. KLA Corp, a leading semiconductor wafer fabrication equipment manufacturer, specializes in semiconductor process control and holds a majority market share in this segment.
Quarterly and Annual Financial Highlights
For the fourth quarter, KLA Corp reported total revenues of $2.569 billion, surpassing the analyst estimate of $2.519 billion. GAAP diluted earnings per share (EPS) were $6.18, while non-GAAP diluted EPS reached $6.60, both exceeding the estimated EPS of $5.87. For the fiscal year, total revenues were $9.81 billion, slightly above the annual estimate of $9.782 billion, with GAAP diluted EPS of $20.28, closely aligning with the estimated $20.30.
Key Financial Metrics
| Q4 FY 2024 | Q3 FY 2024 | Q4 FY 2023 | |
|---|---|---|---|
| Total Revenues | $2,569 million | $2,360 million | $2,355 million |
| Net Income Attributable to KLA | $836 million | $602 million | $685 million |
| Net Income per Diluted Share Attributable to KLA | $6.18 | $4.43 | $4.97 |
| Non-GAAP Net Income Attributable to KLA | $893 million | $715 million | $743 million |
| Non-GAAP Net Income per Diluted Share Attributable to KLA | $6.60 | $5.26 | $5.40 |
Performance Analysis
KLA Corp's strong performance in Q4 FY 2024 is attributed to robust demand in the semiconductor process control market. The company's ability to exceed revenue and EPS estimates highlights its competitive edge and operational efficiency. The reported cash flow from operating activities for the quarter was $892.6 million, with free cash flow at $831.9 million, indicating strong liquidity and financial health.
Challenges and Outlook
Despite the positive results, KLA Corp faces challenges such as market cyclicality and geopolitical risks. However, the company remains optimistic about future growth, as indicated by President and CEO Rick Wallace:
“KLA’s June quarter results exceeded expectations, including revenue, gross margin and EPS, which were all above their respective guidance midpoints, demonstrating the enduring power and differentiation of the KLA portfolio. 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.”
Financial Position
As of June 30, 2024, KLA Corp reported total assets of $15.43 billion, with significant holdings in cash and marketable securities. The company's balance sheet reflects a strong financial position, with total liabilities at $12.07 billion and stockholders' equity at $3.37 billion.
Conclusion
KLA Corp's Q4 FY 2024 earnings report showcases its resilience and market leadership in the semiconductor industry. The company's ability to surpass analyst estimates in both revenue and EPS underscores its robust operational performance and strategic positioning. Investors and stakeholders can find more detailed information in the company's 8-K filing.
Explore the complete 8-K earnings release (here) from KLA Corp for further details.
