KLA-Tencor (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.
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.
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 (TSM), Samsung and United Microelectronics (UMC) substantially increased ordering in Q4. Hynix was also aggressive exiting the year. Novellus (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.