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,
shares dropped 8% 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.
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.
Read: Chip sector flirting with bear-market territory as semiconductor earnings kick off
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,
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.
Read: The pandemic PC boom gave personal computers their biggest year in nearly a decade
On top of a weaker-than-expected forecast from Intel Corp.
INTC,
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,
down 4.8% on the day, compared with a 0.5% decline by the S&P 500 index
SPX,
Intel shares fell 7% on the day.
