KLA-Tencor Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component KLA-Tencor (NASDAQ:KLAC) will unveil its latest earnings tomorrow, Thursday, January 24, 2013. 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 net income of 57 cents per share, a decline of 20.8% 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 93 cents. Between one and three months ago, the average estimate moved down. It has risen from 56 cents during the last month. Analysts are projecting profit to rise by 33.8% versus last year to $3.07.

Past Earnings Performance: Last quarter, the company missed estimates by 3 cents, coming in at profit of 84 cents per share versus a mean estimate of net income of 87 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 17 cents.

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A Look Back: In the first quarter, profit fell 29.5% to $135.4 million (80 cents a share) from $192 million ($1.13 a share) the year earlier, missing analyst expectations. Revenue fell 9.5% to $720.7 million from $796.5 million.

Here’s how KLA-Tencor traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

klac

Stock Price Performance: Between November 19, 2012 and January 17, 2013, the stock price had risen $7.64 (17.3%), from $44.25 to $51.89. 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.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 5.26 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.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 0% in the fourth quarter of the last fiscal year and 0.8% in the third quarter of the last fiscal year before falling in the first quarter.

Analyst Ratings: With 10 analysts rating the stock a buy, two rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts. Over the last three months, the stock’s average rating has increased from hold to moderate buy.

Wall St. Revenue Expectations: On average, analysts predict $634.9 million in revenue this quarter, a decline of 1.2% from the year-ago quarter. Analysts are forecasting total revenue of $2.81 billion for the year, a decline of 11.4% from last year’s revenue of $3.17 billion.

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