EPS of $6.18 increased by 24.4% from previous year
Gross margin of 62.0%
Net income of 836.45M
""The momentum we are experiencing is driven largely by increased investments in advanced nodes as the industry ramps up for the next generation of semiconductor technologies."" - CEO
KLA Corporation (0JPO.L) delivered strong results for Q4 2024, with revenues reaching $2.57 billion, marking an 8.96% increase year-over-year and an 8.95% increase quarter-over-quarter. The company achieved significant growth in net income, up by 22.17% year-over-year to $836 million, reflecting robust operational efficiency and effective cost management despite ongoing supply chain challenges in the semiconductor industry. Management attributed the growth to increased demand for semiconductor manufacturing technology driven by advancements in AI and 5G technologies.
The improving demand trend is underscored by a notable increase in earnings per share (EPS), which rose by 24.40% to $6.22. The effective execution of KLA's growth strategies and operational efficiencies bode well for its competitive positioning in the semiconductor market. As the industry navigates ongoing uncertainties, KLA's results indicate resilience and adaptability.
### Year-over-Year Comparisons
- Revenue Growth: Up 8.96% from Q4 2023
- Gross Profit Growth: Up 14.37% from Q4 2023
- Operating Income Growth: Up 27.70% from Q4 2023
- Net Income Growth: Up 22.17% from Q4 2023
This quarter's robust performance reflects KLA's strategic focus on innovation and operational efficiency, indicating a strong trajectory in an evolving and competitive technology landscape.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.57B
8.96%
8.95%
Gross Profit
1.59B
14.37%
14.36%
Operating Income
1.05B
27.70%
24.07%
Net Income
836.45M
22.17%
39.05%
EPS
6.22
24.40%
39.46%
Key Financial Ratios
currentRatio
2.09
grossProfitMargin
62%
operatingProfitMargin
41%
netProfitMargin
32.6%
returnOnAssets
5.42%
returnOnEquity
24.8%
debtEquityRatio
2.02
operatingCashFlowPerShare
$6.64
freeCashFlowPerShare
$6.19
dividendPayoutRatio
23.6%
priceToBookRatio
33.05
priceEarningsRatio
33.27
Net Income vs. Revenue
Expense Breakdown
Management Commentary
### Management Commentary
- Market Conditions:
"The momentum we are experiencing is driven largely by increased investments in advanced nodes as the industry ramps up for the next generation of semiconductor technologies. We foresee sustained demand for our products as innovation in AI, cloud computing, and mobile communication continues to evolve," said the CEO.
- Operational Strategies:
"Our focus on streamlining operations and enhancing our R&D capabilities has positioned us well despite the challenges in supply chain logistics. We remain committed to delivering value to our shareholders while investing prudently in growth opportunities in line with market demands," stated the CFO.
"The momentum we are experiencing is driven largely by increased investments in advanced nodes as the industry ramps up for the next generation of semiconductor technologies."
â CEO
"Our focus on streamlining operations and enhancing our R&D capabilities has positioned us well despite the challenges in supply chain logistics."
â CFO
Forward Guidance
Looking ahead, KLA management guided for continued revenue growth in Q1 2025, with estimates projected between $2.6 billion and $2.7 billion driven by sustained demand for semiconductor manufacturing technology. Furthermore, investment in R&D is expected to remain robust, aimed at enhancing core competencies in metrology and inspection solutions. Investors should keep an eye on global semiconductor industry trends, particularly in AI and high-performance computing, which are anticipated to drive further demand for KLA's solutions.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0JPO.L Focus
62.04%
41.00%
24.80%
33.27%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
KLA Corporation's Q4 2024 results underscore a robust growth trajectory, positioning the company favorably against its competitors in the semiconductor industry. With a strong balance sheet, increasing demand for products aligned with future technologies, and commitment to innovation, KLA presents a compelling investment opportunity. Investors should watch for execution on strategic initiatives and adaptability to market challenges, which will be critical in sustaining growth.
Key Investment Factors
Growth Potential
KLA Corporation is well-positioned for growth due to increasing global demand for semiconductor manufacturing equipment, spurred by advancements in AI and other technologies. With a solid product portfolio and increasing market share, KLA is expected to capitalize on these growth opportunities.
Profitability Risk
The main risks include supply chain disruptions and potential geopolitical issues affecting the semiconductor industry. Additionally, KLA faces competition from other manufacturers, which could pressure pricing and market share.
Financial Position
KLA's balance sheet reflects solid financial health with a current ratio of 2.09, indicating good liquidity. Cash and short-term investments amount to $4.50 billion, offering significant cushion to manage obligations and invest in growth initiatives.
SWOT Analysis
Strengths
Strong financial performance with significant revenue growth
Leading player in semiconductor manufacturing technology
Robust R&D capabilities driving innovation
Weaknesses
High dependency on cyclical semiconductor industry
Potential overexposure to supply chain disruptions
Opportunities
Expanding into new markets driven by advanced technologies
Growth in AI and cloud computing sectors
Potential acquisitions to enhance product offerings
Threats
Intensifying competition in semiconductor equipment manufacturing