KLA Corp Reaffirms Q3 Revenue Guidance Range Of $2.3B, +/- $125M, Est $2.313B; Cuts Adj EPS Outlook From $5.26 +/- $0.60 Range To $4.83 +/- $0.60 Range, Est $5.31
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KLA Corp has reaffirmed its Q3 revenue guidance at $2.3B, +/- $125M, aligning with an estimate of $2.313B, but has reduced its adjusted EPS outlook from a range of $5.26 +/- $0.60 to $4.83 +/- $0.60, below the estimated $5.31. The company also anticipates $60-$70 million in non-cash expenses for writing off excess and obsolete inventory and $50-$70 million for impairment of goodwill and purchased intangible assets for the quarter ending March 31, 2024. Consequently, KLA Corp has revised its GAAP gross margin guidance to 56.6% +/- 1.0% for the March quarter.
March 18, 2024 | 9:11 pm
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KLA Corp has reaffirmed its Q3 revenue guidance but lowered its adjusted EPS forecast, indicating potential financial challenges. The company also expects significant non-cash expenses and has revised its GAAP gross margin guidance.
The reduction in the adjusted EPS outlook and the expected non-cash expenses for write-offs and impairments are likely to be viewed negatively by investors, potentially leading to a short-term decrease in KLAC's stock price. The reaffirmation of the revenue guidance may not fully offset the negative impact of the lowered EPS forecast and the anticipated expenses.
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