Shareholders might have noticed that KLA Corporation (NASDAQ:KLAC) filed its annual result this time last week. The early response was not positive, with shares down 3.1% to US$763 in the past week. KLA reported US$9.8b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$20.28 beat expectations, being 2.2% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Taking into account the latest results, the consensus forecast from KLA's 21 analysts is for revenues of US$11.5b in 2025. This reflects a notable 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 41% to US$28.83. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$11.2b and earnings per share (EPS) of US$27.32 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

It will come as no surprise to learn that the analysts have increased their price target for KLA 5.1% to US$857on the back of these upgrades. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on KLA, with the most bullish analyst valuing it at US$990 and the most bearish at US$670 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await KLA shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 17% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 18% per year. It's clear that while KLA's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around KLA's earnings potential next year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on KLA. Long-term earnings power is much more important than next year's profits. We have forecasts for KLA going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for KLA that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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