International Markets and KLA (KLAC): A Deep Dive for Investors

Have you looked into how KLA (KLAC) performed internationally during the quarter ending September 2024? Considering the widespread global presence of this maker of equipment for manufacturing semiconductors, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.Upon examining KLAC's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.The company's total revenue for the quarter stood at $2.84 billion, increasing 18.6% year over year. Now, let's delve into KLAC's international revenue breakdown to gain insights into the significance of its operations beyond home turf. Trends in KLAC's Revenue from International MarketsKorea accounted for 8.40% of the company's total revenue during the quarter, translating to $238.67 million. Revenues from this region represented a surprise of -42.19%, with Wall Street analysts collectively expecting $412.86 million. When compared to the preceding quarter and the same quarter in the previous year, Korea contributed $175.14 million (6.82%) and $219.82 million (9.17%) to the total revenue, respectively.Taiwan generated $461.99 million in revenues for the company in the last quarter, constituting 16.26% of the total. This represented a surprise of -16.08% compared to the $550.48 million projected by Wall Street analysts. Comparatively, in the previous quarter, Taiwan accounted for $523.55 million (20.38%), and in the year-ago quarter, it contributed $405.34 million (16.91%) to the total revenue.During the quarter, Japan contributed $188.57 million in revenue, making up 6.64% of the total revenue. When compared to the consensus estimate of $275.24 million, this meant a surprise of -31.49%. Looking back, Japan contributed $171.02 million, or 6.66%, in the previous quarter, and $227.38 million, or 9.49%, in the same quarter of the previous year.Of the total revenue, $1.2 billion came from China during the last fiscal quarter, accounting for 42.17%. This represented a surprise of +45.12% as analysts had expected the region to contribute $825.71 million to the total revenue. In comparison, the region contributed $1.15 billion, or 44.62%, and $1.03 billion, or 42.80%, to total revenue in the previous and year-ago quarters, respectively.During the quarter, Europe & Israel contributed $144.82 million in revenue, making up 5.10% of the total revenue. When compared to the consensus estimate of $137.62 million, this meant a surprise of +5.23%. Looking back, Europe & Israel contributed $119.12 million, or 4.64%, in the previous quarter, and $168.44 million, or 7.03%, in the same quarter of the previous year. Revenue Projections for Overseas Markets Wall Street analysts expect KLA to report $2.95 billion in total revenue for the current fiscal quarter, indicating an increase of 18.8% from the year-ago quarter. Korea, Taiwan, Japan, China and Europe & Israel are expected to contribute 14.5% ($427.94 million), 24.2% ($713.23 million), 9.7% ($285.29 million), 24.2% ($713.23 million) and 4.8% ($142.65 million) to the total revenue, respectively.For the full year, the company is expected to generate $11.73 billion in total revenue, up 19.6% from the previous year. Revenues from Korea, Taiwan, Japan, China and Europe & Israel are expected to constitute 14.6% ($1.72 billion), 28.2% ($3.31 billion), 12.2% ($1.44 billion), 20.6% ($2.41 billion) and 4.9% ($572.16 million) of the total, respectively. The Bottom Line KLA's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.KLA, bearing a Zacks Rank #2 (Buy), is expected to outperform the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> A Look at KLA's Recent Stock Price Performance The stock has declined by 15% over the past month compared to the 0.4% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes KLA, has increased 2.1% during this time frame. Over the past three months, the company's shares have experienced a loss of 10.4% relative to the S&P 500's 5.5% increase. Throughout this period, the sector overall has witnessed a 5.5% increase.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KLA Corporation (KLAC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks