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KLA earnings analysis
$KLAC recently reported earnings, successfully ending its fiscal year. KLA Corporation is dominant in the process diagnostic & control segment of the semiconductor equipment industry. In layman's terms, they provide the tools to inspect wafers for defects which helps its customers improve their semiconductors output. An essential tool that awards KLA a wide economic moat.

Revenues grew by +29% YoY to $2.49B thanks to continued strength in the semiconductor process control segment. Net income came in at $867M with an operating margin of 41.8%. Management expects KLA will grow revenues by at least 20% in calendar 2022, although the company is dealing with supply chain constraints.

Baring a serious escalation between China and the US, KLA should continue growing in 2023 as demand is strong. This is important because revenues from China and Taiwan combined account for 54%. Foundries like $TSM are their biggest customers.

The stock had a good run in recent weeks. For some reason, the company is a bit underfollowed. IMO, KLA is a well-managed, wide-moat company with strong financials riding the long-term secular semiconductors trend.

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