Earnings Preview: KLA-Tencor

Oct.27.11 | About: KLA-Tencor Corporation (KLAC)

KLA-Tencor (NASDAQ:KLAC) is expected to report Q1 earnings after the market close on Thursday, October 27, with a conference call scheduled for 5:00 pm ET.


The consensus estimate is $1.17 for EPS and $791.88M for revenue, according to First Call. Last quarter marked the fourth straight quarter the company beat estimates.

Analyst Views

Piper expects September bookings to be down -25% quarter-over-quarter to $640M, which is at the high end of company's guidance: $469-$640M. The firm expect revenues to be in-line with its guidance of $770M-$820M -- Piper's estimate is $780M. Piper expects KLA to guide Q2 orders to be flat +/-15%. The firms' recent checks indicate strength in Q2 is likely from Intel (NASDAQ:INTC), and as well as from Taiwan Semiconductor (NYSE:TSM), where yield challenges at 28nm are triggering higher than expected spending. While Piper has modeled Q2 revenues to be down -13% quarter-over-quarter to $674M, the firm thinks we are likely to see upside here. Piper rates KLA-Tencor Overweight with a $50 price target. Consensus for Q2/FY12: 97c/$3.96 on $710.47M/$2.85B in revenue. :theflyonthewall.com