KLA-Tencor First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component KLA-Tencor (NASDAQ:KLAC) will unveil its latest earnings on Thursday, October 25, 2012. 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.

KLA-Tencor Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 87 cents per share, a decline of 25.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.17. Between one and three months ago, the average estimate moved down. It has been unchanged at 87 cents during the last month. Analysts are projecting profit to rise by 14% compared to last year’s $3.99.

Past Earnings Performance: Last quarter, the company reported net income of $1.49 per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

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Stock Price Performance: Between August 23, 2012 and October 19, 2012, the stock price had fallen $7.48 (-14.1%), from $53.06 to $45.58. The stock price saw one of its best stretches over the last year between March 5, 2012 and March 20, 2012, when shares rose for 12 straight days, increasing 12.1% (+$5.69) over that span. It saw one of its worst periods between October 2, 2012 and October 11, 2012 when shares fell for eight straight days, dropping 5.6% (-$2.65) over that span.

Wall St. Revenue Expectations: On average, analysts predict $739.3 million in revenue this quarter, a decline of 7.2% from the year-ago quarter. Analysts are forecasting total revenue of $3.16 billion for the year, a decline of 0.3% from last year’s revenue of $3.17 billion.

Analyst Ratings: There are eight out of 13 analysts surveyed (61.5%) rating KLA-Tencor a buy.

Key Stats:

Heading into this earnings announcement, the company is trying build on some positive momentum from last quarter’s income increase. After net income declines in the second quarter of the last fiscal year and third quarter of the last fiscal year, profit rose in the fourth quarter of the last fiscal year.

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 0.8% in the third quarter of the last fiscal year before climbing again in the fourth quarter of the last fiscal year of the last fiscal year.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 1.2% to $247.9 million ($1.45 a share) from $245 million ($1.43 a share) the year earlier, exceeding analyst expectations. Revenue remained steady at $892.5 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 4.83 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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

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