What to Expect From KLA Corporation’s Upcoming Q1 Results?

Deutsche Bank analysts provided their outlook on KLA Corporation (NASDAQ:KLAC) ahead of the upcoming Q1 results, lowering their price target to $370 from $400 while reiterating their buy rating.

The analysts lowered their estimates to be more aligned with their top-down view that WFE would decline 20% year-over-year in 2023 (vs. down 10% year-over-year prior). However, the analysts continue to believe that the company should do better than its capacity-centric peers, given the company's focus on pathfinding and technology ramps, rather than HVM.

The analysts expect revenues to be down 7% year-over-year (vs. down 2% year-over-year prior) in 2023 and up 1% year-over-year (vs. up 7% year-over-year prior) in 2024. The analysts also lowered their EPS estimates for 2023/2024 from $23.50/$26.00 to $22.00/$23.00.