KLA-Tencor Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component KLA-Tencor (NASDAQ:KLAC) will unveil its latest earnings on Thursday, July 26, 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 estimate of analysts is for profit of $1.31 per share, a decline of 12.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.24. Between one and three months ago, the average estimate moved up. It has risen from $1.30 during the last month. Analysts are projecting profit to rise by 9% compared to last year’s $4.47.

Past Earnings Performance: Last quarter, the company beat estimates by 18 cents, coming in at net income of $1.27 per share against an estimate of profit of. The company also topped expectations in the second quarter.

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Stock Price Performance: Between July 16, 2012 and July 20, 2012, the stock price rose $3.63 (8%), from $45.59 to $49.22. 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 November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 13.1% (-$6.34) over that span.

Wall St. Revenue Expectations: Analysts are projecting a decline of 2.2% in revenue from the year-earlier quarter to $873.2 million.

A Look Back: In the third quarter, profit fell 2.1% to $205.3 million ($1.21 a share) from $209.8 million ($1.22 a share) the year earlier, but exceeded analyst expectations. Revenue rose 0.8% to $840.5 million from $834.1 million.

Key Stats:

After experiencing income drops the past two quarters, the company is hoping to use this earnings announcement to rebound. Net income dropped 40.3% in the second quarter and then again in the third quarter.

On the top line, the company is hoping to build on a revenue increase last quarter. Revenue fell 16.2% in the second quarter after increasing in the third quarter.

Analyst Ratings: With 10 analysts rating the stock a buy, one rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 4.57 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. The company improved this liquidity measure from 4.52 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 6.4% to $3.99 billion while liabilities rose by 5.1% to $872.4 million.

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

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