KLA-Tencor Corp Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component KLA-Tencor Corp (NASDAQ:KLAC) will unveil its latest earnings on Thursday, January 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 Corp Earnings Preview Cheat Sheet.

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 66 cents per share, a decline of 40% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 94 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 66 cents during the last month. Analysts are projecting profit to rise by 27.7% versus last year to $3.55.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the first quarter, the company reported profit of $1.17 per share versus a mean estimate of net income of $1.17 per share. In the fourth quarter of the last fiscal year, the company beat estimates by 14 cents.

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Wall St. Revenue Expectations: On average, analysts predict $628.8 million in revenue this quarter, a decline of 18% from the year ago quarter. Analysts are forecasting total revenue of $2.84 billion for the year, a decline of 10.7% from last year’s revenue of $3.18 billion.

Analyst Ratings: Analysts are bullish on this stock with 13 analysts rating it as a buy, one rating it as a sell and two rating it as a hold.

A Look Back: In the first quarter, profit rose 24.5% to $192 million ($1.13 a share) from $154.2 million (91 cents a share) the year earlier, meeting analyst expectations. Revenue rose 16.7% to $796.5 million from $682.3 million.

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 56.2%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 74.4% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose more than twofold in the fourth quarter of the last fiscal year and more than threefold in the third quarter of the last fiscal year.

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 November 21, 2011 to January 20, 2012, the stock price had risen $7.24 (16.4%) from $44.26 to $51.50. The stock price saw one of its best stretches over the last year between September 8, 2011 and September 16, 2011 when shares rose for seven-straight days, rising 11.3% (+$3.95) 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, falling 13.1% (-$6.34) over that span.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com