Unlocking KLA (KLAC) International Revenues: Trends, Surprises, and Prospects

Have you evaluated the performance of KLA's (KLAC) international operations during the quarter that concluded in December 2024? Considering the extensive worldwide presence of this maker of equipment for manufacturing semiconductors, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential 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 foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.While delving into KLAC's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.The company's total revenue for the quarter stood at $3.08 billion, increasing 23.7% 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. A Look into KLAC's International Revenue StreamsDuring the quarter, Korea contributed $357.43 million in revenue, making up 11.62% of the total revenue. When compared to the consensus estimate of $442.44 million, this meant a surprise of -19.21%. Looking back, Korea contributed $238.67 million, or 8.40%, in the previous quarter, and $310.67 million, or 12.49%, in the same quarter of the previous year.Taiwan generated $881.21 million in revenues for the company in the last quarter, constituting 28.64% of the total. This represented a surprise of +99.17% compared to the $442.44 million projected by Wall Street analysts. Comparatively, in the previous quarter, Taiwan accounted for $461.99 million (16.26%), and in the year-ago quarter, it contributed $375.26 million (15.09%) to the total revenue.Japan accounted for 7.43% of the company's total revenue during the quarter, translating to $228.61 million. Revenues from this region represented a surprise of -22.49%, with Wall Street analysts collectively expecting $294.96 million. When compared to the preceding quarter and the same quarter in the previous year, Japan contributed $188.57 million (6.64%) and $297.76 million (11.97%) to the total revenue, respectively.Of the total revenue, $1.09 billion came from China during the last fiscal quarter, accounting for 35.51%. This represented a surprise of +5.83% as analysts had expected the region to contribute $1.03 billion to the total revenue. In comparison, the region contributed $1.2 billion, or 42.17%, and $1.03 billion, or 41.33%, to total revenue in the previous and year-ago quarters, respectively.Europe & Israel generated $134.27 million in revenues for the company in the last quarter, constituting 4.36% of the total. This represented a surprise of -8.96% compared to the $147.48 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe & Israel accounted for $144.82 million (5.10%), and in the year-ago quarter, it contributed $123.36 million (4.96%) to the total revenue. International Market Revenue Projections The current fiscal quarter's total revenue for KLA, as projected by Wall Street analysts, is expected to reach $3.01 billion, reflecting an increase of 27.6% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Korea is anticipated to contribute 14.7% or $443.3 million, Taiwan 19.6% or $591.06 million, Japan 14.7% or $443.3 million, China 29.5% or $886.6 million and Europe & Israel 4.9% or $147.77 million.For the entire year, the company's total revenue is forecasted to be $11.89 billion, which is an improvement of 21.2% from the previous year. The revenue contributions from different regions are expected as follows: Korea will contribute 13.2% ($1.57 billion), Taiwan 17.7% ($2.1 billion), Japan 11.7% ($1.4 billion), China 33.9% ($4.03 billion) and Europe & Israel 5% ($590.34 million) to the total revenue. Closing Remarks 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.In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.At the moment, KLA has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Assessing KLA's Stock Price Movement in Recent Times Over the preceding four weeks, the stock's value has appreciated by 12.4%, against an upturn of 2.7% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts KLA among its entities, has appreciated by 1.8%. Over the past three months, the company's shares have seen an increase of 7.4% versus the S&P 500's 6.2% increase. The sector overall has witnessed an increase of 7.4% over the same period.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want 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