KLA-Tencor Corp Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component KLA-Tencor Corp (NASDAQ:KLAC) will unveil its latest earnings on Thursday, July 28, 2011. KLA-Tencor Corporation 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 (IC) defect monitoring.

KLA-Tencor Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.35 per share, a rise of 92.9% 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 $1.27. Between one and three months ago, the average estimate moved up, but has dropped from $1.36 during the last month. For the year, analysts are projecting net income of $4.77 per share, a rise of more than threefold from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 7 cents, reporting profit of $1.31 per share against a mean estimate of net income of $1.24 per share.

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Wall St. Revenue Expectations: On average, analysts predict $872.7 million in revenue this quarter, a rise of 56% from the year ago quarter. Analysts are forecasting total revenue of $3.15 billion for the year, a rise of 73.1% from last year’s revenue of $1.82 billion.

Analyst Ratings: Analysts are bullish on KLA-Tencor as seven analysts rate it as a buy, one rates it as a sell and six rate it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 86.6%, with the biggest boost coming in the first quarter when revenue rose 99.1% from the year earlier quarter.

The company increased its gross margin by 4.3 percentage points in the in the third quarter. Revenue rose 74.4% while cost of sales rose 57.1% to $327.7 million from a year earlier.

Competitors to Watch: Rudolph Technologies, Inc. (NASDAQ:RTEC), Nanometrics Incorporated (NASDAQ:NANO), Nova Measuring Instruments Ltd. (NASDAQ:NVMI), Applied Materials, Inc. (NASDAQ:AMAT), Zygo Corporation (NASDAQ:ZIGO), Camtek LTD. (NASDAQ:CAMT), CyberOptics Corporation (NASDAQ:CYBE), Lam Research Corporation (NASDAQ:LRCX), LTX-Credence Corporation (NASDAQ:LTXC), and Cohu, Inc. (NASDAQ:COHU).

Stock Price Performance: During June 23, 2011 to July 22, 2011, the stock price had risen $4.65 (11.8%) from $39.46 to $44.11. The stock price saw one of its best stretches over the last year between February 10, 2011 and February 18, 2011 when shares rose for seven-straight days, rising 8.6% (+$3.94) over that span. It saw one of its worst periods between November 10, 2010 and November 17, 2010 when shares fell for six-straight days, falling 4.2% (-$1.56) over that span. Shares are up $5.88 (+15.4%) year to date.

(Source: Xignite Financials)

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