Dallas, Texas 04/28/2014 (FINANCIALSTRENDS) – KLA-Tencor Corporation (NASDAQ:KLAC) saw its price target being lowered by rating agency B. Riley to $65 from previous recommendation of $70.This came on the back of the company reducing its 4Q guidance and a less than expected WFE. These rating upgrades were happening on the back of lower than expected profit booking announcements by the firm on 24th April, as part of its 3Q earnings call.
In spite of the management team trying to look at the positives in the past quarter, the downgrade in the P.T led the market investors to draw down their investments in the stock, which resulted in a 7.1 percent decrease in the share price of the stock during trading on 25th April.
KLA-Tencor Corporation (NASDAQ:KLAC) President and CEO Rick Wallace while addressing the press after the earnings call has been quoted to have said that, “KLA-Tencor delivered solid results for the third quarter of fiscal year 2014, demonstrating our market leadership and strong operational execution.
KLA-Tencor Corporation (NASDAQ:KLAC) Down 7% Due To Rating Downgrade
Semiconductor device manufacturers are facing enormous challenges in transitioning from planar to 3D transistor structures and in implementing new process technologies at the leading edge such as multi-patterning lithography. Although the semiconductor capital equipment industry is currently experiencing a pause we remain focused”.
From its third quarter 2014 operations, the company reported net income of $204 million as against the $166 million that it had reported same time last year and called out earnings per share of $1.21 as against the 98 cents it had reported in 3Q13. These returns come on the back of company bringing in revenue of $832 million for the reporting quarter as against the $729 million it had reported in 3Q13.
Interestingly, on 25th April, Northland Capital has reiterated the stock at market perform while reducing the price target to $69 from previous $62 P.T.