Chip stock KLA Corp. (NASDAQ:KLAC) slid in pre-market trading after the company’s weak outlook left investors disappointed. Looking forward to its third quarter, KLAC expects revenues in the range of $2.175 billion to $2.425 billion, which is below the consensus estimate of $2.46 billion. In addition, adjusted earnings are likely to be between $4.66 and $5.86 per diluted share. Analysts were expecting the company to report earnings of $5.86 per share.
The company reported adjusted diluted earnings of $6.16 in its second quarter, at the upper end of its guidance range and above consensus estimates of $5.91 per share. KLAC posted total revenues of $2.49 billion, above its guidance range midpoint of $2.45 billion and surpassing Street estimates of $2.35 billion.
Is KLA a Good Stock to Buy?
Analysts remain cautiously optimistic about KLAC stock with a Moderate Buy consensus rating based on seven Buys, five Holds, and one Sell. KLAC has surged by more than 50% over the last year, and the average KLAC price target of $633.64 implies a downside potential of 1.3% at current levels.
