Why KLA Corporation Rose 14.3% in May
Shares of KLA Corporation (NASDAQ: KLAC) rose 14.3% in May according to data from S&P Global Market Intelligence. The semiconductor equipment company didn't actually have much in the way of new news in May; however, it did report earnings in the last days of April. Unlike other semicaps that have missed earnings due to supply constraints, KLA actually beat for revenue and earnings. Yet with the outlook for semiconductor investment remaining positive even amid macro concerns, KLA found a bid after its valuation had fallen far enough.
In its fiscal third quarter, KLA posted $2.3 billion in revenue, up 27.2%, with adjusted (non-GAAP) earnings per share of $5.13. Both numbers beat analyst expectations. In the release, CEO Rick Wallace said, "The demand environment for KLA products and solutions remains robust amid a persistently challenging supply chain landscape, and we are focused on navigating this environment to consistently meet customer commitments and delivering on our long-term strategic objectives and financial targets."
KLA is far and away the leader in process control equipment, which scans wafers and semiconductors for imperfections, making this equipment absolutely crucial to leading-edge semiconductor production. As more and more steps are required to produce leading-edge semiconductors, process control needs to be implemented at every step of the technically difficult process in order to ensure quality yields.
Source Fool.com
