Is KLAC's EPS growth rate accelerating in 2025?

KLA's EPS growth rate is not currently accelerating in 2025. Here's the analysis to support this conclusion:

1. Current EPS Growth Rate Expectations: According to the Zacks Consensus Estimates, KLA's EPS is expected to grow by 53.23% in the upcoming quarter, with an estimated EPS of $8.06. This is a significant increase from the previous year's EPS, indicating a strong growth trajectory.
2. No Acceleration Detected: However, when comparing the current quarter's EPS growth rate expectations with the previous year's, there is no indication of acceleration. The growth rate remains consistent, or possibly slightly decreasing, as evidenced by the fact that the Zacks Consensus EPS estimate has moved 0.05% lower within the past month.
3. Market Performance and Analyst Sentiments: KLA's stock performance has been mixed, with recent trading sessions showing fluctuations that are typical in volatile markets. Despite a loss of 2.37% over the previous month, which underperformed the Computer and Technology sector, KLA's stock has outpaced the S&P 500's gains in some trading sessions. Analysts have recently downgraded KLA, with Jefferies lowering the stock's rating and price target, which may reflect a more cautious outlook on the company's growth prospects.
4. Earnings Outlook: The upcoming earnings report on April 24, 2025, is expected to show continued strong performance, with KLA predicted to report EPS of $8.20, beating analysts' consensus estimates. This suggests that while KLA may not be accelerating its growth rate, it is maintaining a high level of performance that aligns with market expectations.

In conclusion, while KLA is expected to show significant EPS growth in 2025, there is no indication of acceleration. The company's growth rate remains robust, but it is consistent with previous quarters rather than showing a marked increase.