KLA-Tencor Corp. Earnings: Keeping the Profitability Streak Alive

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S&P 500 (NYSE:SPY) component KLA – Tencor Corporation (NASDAQ:KLAC) reported net income above Wall Street’s expectations for the fourth quarter. KLA-Tencor is a company that designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nanoelectronics industries. Its primary offerings include wafer and integrated circuit defect monitoring.

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KLA – Tencor Corporation Earnings Cheat Sheet

Results: Net income for KLA – Tencor Corporation rose to $247.9 million ($1.46 per share) vs. $245 million ($1.43 per share) in the same quarter a year earlier. This marks a rise of 1.2% from the year-earlier quarter.

Revenue: Remained constant at $892.5 million.

Actual vs. Wall St. Expectations: KLA – Tencor Corporation beat the mean analyst estimate of $1.31 per share. It beat the average revenue estimate of $873.2 million.

Quoting Management: “Global consumer demand for advanced mobile devices continued to fuel exceptional growth for KLA-Tencor in fiscal year 2012, as we delivered strong financial performance and increased the cash returned to our stockholders through our dividend program,” said Rick Wallace, KLA-Tencor’s president and CEO.

Key Stats:

Gross margin shrank 0.6 percentage point to 59.5%. The contraction appeared to be driven by increased costs, which rose 1.5% from the year earlier quarter while revenue rose 0%.

The company has now beaten analyst estimates for three quarters in a row. It beat the mark by 18 cents in the third quarter and by 6 cents in the second quarter.

Last quarter’s profit increase breaks a two-quarter streak of year-over-year profit decreases. In the third quarter, net income fell 2.1% while the figure dropped in the second quarter.

Over the last five quarters, revenue has increased 12.2% on average year-over-year. The biggest increase came in the fourth quarter of the last fiscal year, when revenue rose 59.5% from the year-earlier quarter.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the first quarter of the next fiscal year is $1.17 per share, up from $1.12 ninety days ago. Over the past three months, the average estimate for the fiscal year has climbed from $4.21 per to share to $4.47.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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