Can KLAC sustain its EPS momentum into Q4 2025?

**KLA Corporation (KLAC) is likely to sustain its EPS momentum into Q4 2025**, based on several key factors: 1. **Consistent Performance**: KLAC has demonstrated strong financial performance, exceeding market revenue expectations with a 23.7% year-on-year increase in sales, reaching $3.08 billion in Q4 CY2024. The company's revenue guidance for the next quarter was also optimistic, with a midpoint of $3 billion. 2. **Earnings Per Share (EPS) Trends**: The most recent EPS reported was $6.18 for Q4 FY 2024, which beat estimates. The EPS momentum, although negative in terms of MTM (-143.08) as of April 4, 2025, is based on a previous high EPS of $6.16, suggesting that KLAC's EPS could stabilize or increase given the company's strong financial health. |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |KLAC|KLAC.O|KLA|2024 Q3|-11.928429423459255|4.43|185| |KLAC|KLAC.O|KLA|2025 Q1|29.57486136783733|7.01|185| |KLAC|KLAC.O|KLA|2025 Q2|43.92523364485981|6.16|185| 3. **Analyst Confidence**: The average analyst price target for KLAC is $793.73, with a consensus rating of "Neutral". This suggests that analysts are not only optimistic about KLAC's future performance but also recognize the company's potential to sustain its current EPS momentum. 4. **Strategic Positioning**: KLAC's strategic positioning in the semiconductor industry, coupled with its ability to capitalize on industry trends, is expected to support continued growth. The company's brand equity and competitive edge are significant strengths. 5. **Financial Health Indicators**: KLAC's robust free cash flow and capital returns indicate a strong financial foundation, which is crucial for sustaining growth and returning capital to shareholders. The company's cash flow from operating activities was reported at $995.2 million for Q1 FY 2025, highlighting its ability to generate cash. 6. **Industry Outlook**: The semiconductor industry is poised for growth, which is expected to benefit KLAC's performance. Morgan Stanley's raise in the stock price target to $748 reflects confidence in KLAC's continued performance. In conclusion, while there may be some fluctuations in EPS momentum due to market conditions, KLAC's strong financial performance, analyst confidence, and strategic positioning in the semiconductor industry suggest that the company is well-positioned to sustain its EPS momentum into Q4 2025.