Are You Expecting This from KLA-Tencor?

KLA-Tencor (Nasdaq: KLAC  ) is expected to report Q4 earnings around July 26. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict KLA-Tencor's revenues will wither -21.0% and EPS will wane -47.0%.

The average estimate for revenue is $705.2 million. On the bottom line, the average EPS estimate is $0.79.

Revenue details
Last quarter, KLA-Tencor recorded revenue of $729.0 million. GAAP reported sales were 13% lower than the prior-year quarter's $840.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.01. GAAP EPS of $0.98 for Q3 were 19% lower than the prior-year quarter's $1.21 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 57.5%, 20 basis points worse than the prior-year quarter. Operating margin was 27.7%, 610 basis points worse than the prior-year quarter. Net margin was 22.8%, 160 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.83 billion. The average EPS estimate is $3.25.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 248 members out of 279 rating the stock outperform, and 31 members rating it underperform. Among 87 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 81 give KLA-Tencor a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KLA-Tencor is outperform, with an average price target of $59.31.

Is KLA-Tencor the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

Add KLA-Tencor to My Watchlist.