KLA Corp. shares fell in the extended session Thursday after the chip-equipment maker’s weak outlook overshadowed its earnings beat for the quarter.
KLA KLAC, -4.94% shares dropped 3% after hours, following a 4.9% decline in the regular session to close at $ 361.80.
KLA forecast earnings of $ 4.35 to $ 5.25 a share on revenue of $ 2.1 billion to $ 2.3 billion in the fiscal third quarter. Analysts surveyed by FactSet had estimated $ 5.50 a share on revenue of $ 2.37 billion for the fiscal third quarter.
The company reported fiscal second-quarter net income of $ 717.4 million, or $ 4.71 a share, compared with $ 457.3 million, or $ 2.94 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $ 5.59 a share, compared with $ 3.24 a share in the year-ago period.
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Revenue rose to $ 2.35 billion from $ 1.65 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast $ 5.45 a share on revenue of $ 2.33 billion, based on KLA’s forecast of $ 4.95 to $ 5.85 a share on revenue of $ 2.23 billion to $ 2.43 billion.
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So far, weak outlooks for the March-ending quarter risk becoming a drumbeat for the chip sector at large given this week’s earnings reports.
On Wednesday, larger rival Lam Research Corp. LRCX, -6.93% fell short of expected revenue for the quarter and issued a weaker-than-expected forecast owing to supply-chain problems, and its shares dropped 6.9% in Thursday trading.
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On top of a weaker-than-expected forecast from Intel Corp. INTC, -7.04% late Wednesday and Wall Street concerns about PC sales falling off, the whole chip sector was taking a hit with the PHLX Semiconductor Index SOX, -4.78% down 4.8% on the day, compared with a 0.5% decline by the S&P 500 index SPX, -0.54%. Intel shares fell 7% on the day.