Semiconductor production equipment company Kulicke & Soffa (NASDAQ: KLIC) will be reporting earnings tomorrow after market hours. Here's what to look for.

Kulicke and Soffa met analysts' revenue expectations last quarter, reporting revenues of $171.2 million, down 2.9% year on year. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.

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 be flat year on year at $174.2 million, improving from the 55% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.24 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kulicke and Soffa has missed Wall Street's revenue estimates twice over the last two years.

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. Teradyne's revenues decreased 2.9% year on year, beating analysts' expectations by 5.2%, and Lam Research reported a revenue decline of 2%, topping estimates by 1.7%. Teradyne traded up 8.2% following the results while Lam Research was also up 1.9%.

Read our full analysis of Teradyne's results here and Lam Research's results here.

Investors in the semiconductor manufacturing segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Kulicke and Soffa is down 6.6% during the same time and is heading into earnings with an average analyst price target of $57.5 (compared to the current share price of $47.16).

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