Earnings Preview: KLA-Tencor Corp.

| About: KLA-Tencor Corporation (KLAC)

KLA-Tencor Corp. (NASDAQ:KLAC) is expected to report Q3 earnings after the market close on Thursday, April 29, with a conference call scheduled for 5 pm ET.


The consensus estimate is 35c for EPS and $472.36M for revenue, according to First Call.

Analyst Views

Stifel expects KLA-Tencor to meet their estimates of $480M in revenue and pro-forma EPS of 42c, excluding options (33c including options). The firm believes that the company will at least meet and likely exceed its stated bookings guidance of up 20% sequentially. Stifel will be focused on management’s commentary regarding second half trends, particularly if orders momentum can continue into 2H10. The firm believes that NAND flash orders could emerge earlier for KLA-Tencor, relative to some of its other front end process equipment peers, and that could provide a boost for KLA-Tencor in 2H10.

Longer term, Stifel will also be looking to get some additional color on the company’s perspective of its market share position in its core inspection business. Stifel believes that KLA-Tenor's near-term outlook, along with commentary about its share position, will be the key catalysts for the stock on a going-forward basis. Stifel admits its June quarter estimates of $597M/pf EPS 64c (54c including options) are too high, too aggressive, and would not be surprised if they needed to modestly lower them following the call. Consensus for Q4 is 47c on $526.56M in revenue.