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KLA-Tencor (NASDAQ:KLAC) is expected to report Q2 earnings after the market close on Thursday, January 26, with a conference call scheduled for 5:00 pm ET.

Guidance

The consensus estimate is 66c for EPS and $629.45M for revenue, according to First Call. Analysts expect a decent Q2, with revenue and earnings coming in-line with management's guidance. For Q2, management provided guidance of: orders to be up 25%-45%, revenue of between $600M-$650M, gross margin 57%-58%, opex of $200M-$205M, tax rate of 26%, and non-GAAP EPS of 56c-72c.

Analyst Views

RBC Capital believes KLA-Tencor will report orders at or above the high-end of guidance given strong capex trends exiting 2011. Taiwan Semiconductor, or TSMC (NYSE:TSM), Samsung and United Microelectronics (NYSE:UMC) substantially increased ordering in Q4. Hynix was also aggressive exiting the year. Novellus (NASDAQ:NVLS) raised guidance on its Q4 mid-quarter update and Tokyo Electron recently reported orders 50% higher than its guidance. RBC expects KLA Q4 revenue and EPS in-line with its estimates, at the midpoint of management's guidance. The firm believes KLA benefited from roughly $100M in additional spending from wafer manufacturing customers following the Japan earthquake. RBC's Q3 estimates were raised recently to 73c on $6677M in revenue; they are still below consensus of 80c on $680.56M in revenue.

Source: Earnings Preview: KLA-Tencor

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