KLA Reports Strong Q3 Earnings But Cautions on Outlook Due to Market Headwinds
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KLA Corporation reported Q3 earnings that exceeded expectations, but management issued cautious guidance for next quarter amid challenging market conditions
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Revenue was $2.49B, near the high end of guidance range, but net income declined due to a $219M goodwill impairment charge
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Annual revenue and earnings growth over the past decade has been strong, but slowed in 2022-2023
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China accounts for 41% of revenue, posing a political risk given tensions around Taiwan that seem to be escalating
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Valuations are reasonable compared to peers, but revenue growth slowdown and industry/political risks make the stock a "Hold" vs previous "Buy" rating