KLA Corp. reduces Q3 EPS view to $4.83, +/- 60c, consensus $4.87

As part of its announcement exiting flat panel display business, the company states: “This decision has no effect on revenue expectations for the March 2024 quarter and the Company reaffirms its revenue guidance range of $2.3B, plus or minus $125M. In addition, the Company expects that it will incur between: $60M-$70Min non-cash expenses to write off excess and obsolete inventory related to the discontinued product lines for the quarter ending March 31, 2024; and $50M-$70Mfor impairment of goodwill and purchased intangible assets. As a result of the decision, the Company is revising its guidance for the following financial metrics for the March quarter: GAAP gross margin is expected to be in a range of 56.6% +/- 1.0%; Non-GAAP gross margin is expected to be in a range of 58.7% +/- 1.0%; GAAP diluted EPS is expected to be in a range of $4.06 +/- $0.60; Non-GAAP diluted EPS is expected to be in a range of $4.83 +/- $0.60; Over the longer term, the Company expects that the exit from the FPD systems market will have an immaterially favorable impact on profitability margins.”