- MKS Instruments reported an adjusted earnings per share (EPS) of $2.15 for the fourth quarter, surpassing both the previous year’s $1.17 and analysts’ estimates of $1.94.
- The company’s net revenue for the quarter was $935 million, marking a year-over-year increase of 4.7% and exceeding the estimated $912.5 million.
- Net product revenues reached $824 million, up 5% from the previous year, beating the anticipated $808.7 million.
- Net service revenue rose by 2.8% year-over-year to $111 million, slightly below the expected $112.5 million.
- MKS Instruments achieved an adjusted operating margin of 21.3%, compared to 20.3% in the prior year.
- The adjusted gross margin was 47.2%, improving from last year’s 46% and slightly surpassing the forecasted 47.1%.
- Research and Development (R&D) expenses were reduced to $65 million, a decrease of 7.1% from the previous year, and lower than the projected $71.2 million.
- The Semiconductor market segment posted net revenues of $400 million, up 10% from the previous year, exceeding the expected $380.3 million.
- Net revenue from the Electronics and Packaging segment was $254 million, reflecting a 12% increase year-over-year and outperforming the estimated $238.5 million.
- For the first quarter of 2025, the company anticipates revenue of $910 million, with a possible variance of $40 million.
- GAAP net income is projected to be $43 million, with a potential variance of $19 million.
- The company expects an Adjusted EBITDA of $217 million, allowing for a variance of $23 million.
- Projected GAAP net income per diluted share stands at $0.63, with a potential variance of $0.28.
- Non-GAAP net earnings per diluted share are expected to be $1.40, with a possible variance of $0.27.
- Analyst recommendations include 10 buys and 4 holds, with no sells.
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Mks Instruments on Smartkarma
Analysts at Baptista Research on Smartkarma are bullish on Mks Instruments, Inc., highlighting the company’s strong performance in the third quarter of 2024. With revenues reaching $896 million, primarily driven by gains in the semiconductor and electronics sectors, Mks Instruments exceeded expectations. A gross margin of 48.2%, higher than anticipated, was achieved due to a favorable product mix and operational leverage. The research report titled “MKS Instruments: Expansion & Diversification in Photonics & Lithography Propelling Our ‘Buy’ Rating! – Major Drivers” emphasizes the positive outlook for the company.
In another report by Baptista Research on Smartkarma, analysts delve into Mks Instruments Inc.’s strategic moves in the artificial intelligence server market. The company’s second-quarter results for the fiscal year 2024 showcased robust financial management, with revenues hitting $887 million and earnings per share (EPS) of $1.53, surpassing expectations. The report, “MKS Instruments Inc: Initiation Of Coverage – Will The Expansion into Artificial Intelligence Server Market Be A Game Changer? – Major Drivers,” outlines the potential impact of the company’s expansion into this market segment on its future valuation.
A look at Mks Instruments Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma’s Smart Scores, Mks Instruments has a mixed outlook for the long term. The company received a high score of 4 for Momentum, indicating strong positive price performance. However, its Value, Dividend, Growth, and Resilience scores are all moderate, ranging from 2 to 3. This suggests that while Mks Instruments has shown positive momentum in the market, other factors such as value, dividend yield, growth potential, and resilience are not as high.
MKS Instruments, Inc. specializes in developing, manufacturing, and supplying instruments and components crucial for controlling and analyzing gases in semiconductor and industrial manufacturing processes. The company’s product range caters to various industries including flat panel displays, magnetic and optical storage devices, solar cells, fiber optic cables, and diamond thin films. With differing Smart Scores across key factors, market observers may consider a balanced view of Mks Instruments‘ long-term prospects based on both its strong momentum and moderate performance in other areas.
Disclaimer: This article by Smartkarma is general in nature and 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. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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