NEW YORK (TheStreet) -- KLA-Tencor (KLAC - Get Report) announced that it was increasing its quarterly dividend to 50 cents per share from 45 cents per share. It's also increasing its share buyback plan by more than 13 million shares at a total value of over $1 billion based on the company's previous closing price of $74.03.
"KLA-Tencor has returned over $2.2 billion to stockholders over the past five fiscal years, and these latest increases in the level of the dividend and the share repurchase authorization reflect management's ongoing commitment to our stockholders as we execute our long-term growth strategies," said CEO Rick Wallace.
KLA-Tencor shares are down -1.1% to $73.22 in early market trading today.
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TheStreet Ratings team rates KLA-TENCOR CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate KLA-TENCOR CORP (KLAC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 2.9%. Since the same quarter one year prior, revenues rose by 14.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- KLAC's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.04, which clearly demonstrates the ability to cover short-term cash needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 33.52% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, KLAC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for KLA-TENCOR CORP is rather high; currently it is at 61.25%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 24.48% is above that of the industry average.
- KLA-TENCOR CORP has improved earnings per share by 23.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, KLA-TENCOR CORP reported lower earnings of $3.21 versus $4.46 in the prior year. This year, the market expects an improvement in earnings ($3.62 versus $3.21).
- You can view the full analysis from the report here: KLAC Ratings Report