KLA Corp Announces $6 Billion Buybacks, Raises Dividend and Reaffirms Outlook, Analyst Positive

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KLA Corporation (NASDAQ:KLAC) announced today the board has authorized a $6 billion buyback plan.

The announcement was made during the company’s Investor Day. Moreover, the company hiked its quarterly dividend by 24% to $1.30 per share.

“Today’s announcements of a new share repurchase authorization and increase in the quarterly dividend level reflect our long standing focus on productive capital allocation and confidence in our business strategies,” said Rick Wallace, president and chief executive officer.

KLAA also reaffirmed its FQ4 guidance that calls for an adjusted EPS of $4.93 to $6.03, which is slightly ahead of the estimate of $5.46. Revenues are still seen at between $2.3 billion and $2.55 billion, somewhere in line with the consensus of $2.43 billion.

“The semiconductor industry has become even more essential to an increased number of industries and geographies and is expected to grow and change in ways that benefit KLA,” Wallace added.

Stifel analyst Patrick Ho said that today’s news is not surprising given the company’s continued “strong track record of shareholder return.”

“We have cited for some time that the demand environment remains very healthy, and KLA has managed through the supply chain/COVID/cost situation well. We also believe KLA has very good visibility into 2023 at this point, and if anything is likely working on some 2024 fab projects as well,” Ho told clients in a note.

KLAC stock price is down half a percent in pre-market Thursday.