KLAC - Embedded Expectations Analysis - 2021 06 19
KLA Corporation (KLAC:USA) currently trades above recent averages relative to UAFRS-based (Uniform) earnings, with a 19.0x Uniform P/E, implying stable expectations for the firm. However, management is excited about developing new supply chain processes and confident about their growth performance and gross margin driversSpecifically, management generated an excitement marker when saying they will move things and adjust their processes as needed to deal with supply chain issues and deliver for customers. Moreover, management is confident growth performance was in line with the market and that they ended the quarter with a flexible and attractive bond maturity profile. Furthermore, they are confident revenue for the Specialty Semiconductor Process segment grew 8% over the prior year, Process Control will have stronger performance in H2 2021, and gross margin drivers are in line with the upper end of their guided range. Management is also confident H2 2021 growth is in line with guidance as a result of incremental capacity and investments in wafers
KLA is a supplier of process control and yield management solutions for the semiconductor and related nanoelectronics industries. The company provides process control and process-enabling solutions for manufacturing and testing wafers and reticles, integrated circuits, packaging, light emitting diodes, power devices, compound semiconductor devices, microelectromechanical systems, data storage, printed circuit boards (PCBs), and flat and flexible panel displays, as well as general materials research. The company has four reportable segments which include Semiconductor Process Control; Specialty Semiconductor Process; PCB, Display and Component Inspection; and Other.
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