🐻Chip Supplier KLAC Offers Disappointing Outlook After Quarterly Beat🫠🫠

Fellow 🐯🐯🐯 are you also watching the chip sector closely like me to see when the 🐂 cycle will officially start❓Today, I’ll be looking at KLA Corporation as it’s in the top 10 holdings of both SOXX (as of 25/1) & SOXL (as of 24/1)-see photos below. This means that 🔑 movements in KLAC will affect SOXX & more so, SOXL since it's a leveraged ETF🔍

$KLA-Tencor(KLAC)$ crashed 6.85% on 27/1 (Fri) after the semiconductor equipment supplier offered up a current-quarter outlook that fell short of Wall Street views despite beating analysts’ forecast for last quarter.

🕵🏻‍♀️🕵🏻‍♂️Let’s have a look at the Quarter ended 31/12/22 (Fiscal Q2 2023) Earnings Report for KLAC released on 26/1/23:

⭐️ Revenue: $2.98 Billion

👍 Beat analysts’ forecast of $2.82 billion🥊

👍 Revenue increased 9.5% over Previous Quarter’s $2.72 Billion

👍 Revenue increased 24.9% over Previous Year Same Quarter’s $2.35 Billion

⭐️Diluted Earnings Per Share (EPS): $6.89

👎 Diluted EPS decreased 4.3% over Previous Quarter’s $7.20

👍👍 Diluted EPS increased 46.3% over Previous Year Same Quarter’s $4.71

⭐️Dividend per Share: $1.30

👍 Dividend per Share increased 23.8% over Previous Year Same Quarter’s $1.05

⭐️Cash Flow from Net Income: $0.979 Billion

👍 Cash Flow from Net Income increased 36.4% over Previous Year Same Quarter’s $0.718 Billion

⭐️ Q1 2023 outlook is for revenue to be in the range of $2.2 to $2.5 Billion, with sales of $2.35 Billion & adjusted earnings of $5.22/share.

👎 Analysts were looking for sales of $2.53 Billion & earnings of $5.90/share.

👎 16.1%-26.2% lower than current quarter’s $2.98 Billion.

🤔💭QN: Buy, Hold, or Sell⁉️

Contrary to the positive outlook of ASML (who is a also a chip supplier), KLAC joins TSM, TXN, & LCRX in their 🐻-ish outlook, suggesting that the chip down cycle has not ended🫠🫠

⭐️ The current consensus among 21 polled investment analysts is a BUY🤔

⭐️ 18 analysts offering 12-month price forecasts for KLAC have a median🎯 of $435 with a high estimate of $505 & a low estimate of $310.

‼️ KLAC has a 52-Week High of $457.12 & a 52-Week Low of $250.2 & the closing price of was $399.37 on 27/1 (Fri).

I’m eagerly waiting for the earnings of AMD on 31 Jan & NVDA on 22 Feb to see what unfolds about the chip sector but am 🐻-ish for today as VIX soared 8.16% pre-market🫠🫠

$NVIDIA Corp(NVDA)$ $Advanced Micro Devices(AMD)$ $Micron Technology(MU)$ $Intel(INTC)$ 

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