KLA Corporation Reports Strong Q4 Earnings and Growth Outlook

KLA Corporation delivers robust Q4 earnings with a record revenue, driven by services and process control growth. The company anticipates continued momentum and confidence in 2025 amid export control challenges.

Date: 31-01-2025

AI Rating: 8

Earnings Per Share (EPS): KLA reported a diluted GAAP EPS of $6.16, with non-GAAP diluted EPS at $8.20, indicating strong earnings performance and an increase above guidance expectations.

Revenue Growth: For calendar year 2024, KLA's revenue grew by 12% to a record $10.85 billion, with a December quarter revenue of $3.08 billion surpassing guidance. The anticipated growth in 2025 is expected to be fueled by significant investments in leading-edge logic, high-bandwidth memory, and advanced packaging, alongside a forecasted revenue of approximately $3 billion for the March quarter.

Net Income: The net income for the quarterly period was reported at $1.1 billion, demonstrating strong profitability that should positively influence investor sentiment.

Profit Margins: KLA maintained industry-leading gross and operating margins at 61% and 42%, respectively, underscoring strong operational efficiency and cost management.

Free Cash Flow (FCF): The company reported free cash flow of $757 million for the December quarter, further strengthening its financial position and ability to return capital to shareholders.

Return on Equity (ROE): Although specific ROE figures are not explicitly mentioned, the overall performance and capital return strategy suggest a positive outlook in this area, as KLA returned $2.9 billion in dividends and share buybacks over the past year.

Stocks: KLAC