Semiconductor production equipment company Kulicke & Soffa (NASDAQ: KLIC) will be reporting earnings tomorrow after market close. Here’s what to expect.

Kulicke and Soffa beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $166.1 million, down 3% year on year. It was a very strong quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts’ EPS estimates.

Is Kulicke and Soffa a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Kulicke and Soffa’s revenue to decline 4.1% year on year to $165.1 million, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kulicke and Soffa has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.6% on average.

Looking at Kulicke and Soffa’s peers in the semiconductor manufacturing segment, some have already reported their Q1 results, giving us a hint as to what we can expect. FormFactor delivered year-on-year revenue growth of 1.6%, beating analysts’ expectations by 0.9%, and Amkor reported a revenue decline of 3.2%, topping estimates by 3%. FormFactor traded up 3.1% following the results while Amkor was down 2.7%.

Read our full analysis of FormFactor’s results here and Amkor’s results here.

There has been positive sentiment among investors in the semiconductor manufacturing segment, with share prices up 17.6% on average over the last month. Kulicke and Soffa is up 13.5% during the same time and is heading into earnings with an average analyst price target of $49 (compared to the current share price of $33.17).

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