HomeMarket NewsMKS Instruments (MKSI) Q1 Earnings Top Estimates, Revenues Up

MKS Instruments (MKSI) Q1 Earnings Top Estimates, Revenues Up

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MKS Instruments MKSI reported adjusted earnings of $1.18 per share in first-quarter 2024, up from the year-ago quarterโ€™s earnings of 48 cents. The figure beat the Zacks Consensus Estimate by 57.33%.

Revenues of $868 million beat the consensus mark by 0.73% and increased 9.3% year over year.

Products revenues (86.9% of total revenues) were $754 million, up 5.9% year over year.

Services revenues (13.1% of total revenues) rallied 39% year over year to $114 million.

MKS Instruments, Inc. Price, Consensus and EPS Surprise

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MKS Instruments, Inc. Price, Consensus and EPS Surprise

MKS Instruments, Inc. price-consensus-eps-surprise-chart | MKS Instruments, Inc. Quote

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Quarterly Update

Revenues from the Semiconductor market (40.4% of total revenues) increased 13.6% year over year to $351 million. The figure beat the Zacks Consensus Estimate by 6.70%.

Electronics & Packaging revenues (24% of total revenues) were $208 million, lower than $222 million reported in the year-ago quarter. The figure missed the Zacks Consensus Estimate by 5.13%.

Specialty Industrial revenues (35.6% of total revenues) increased 17.5% year over year to $309 million. However, the figure missed the Zacks Consensus Estimate by 1.44%.

Operating Details

In the first quarter, the adjusted gross margin expanded 560 basis points (bps) on a year-over-year basis to 47.8%.

Research & development and sales, general & administrative expenses, as a percentage of revenues, declined 100 bps and 230 bps on a year-over-year basis, respectively.

MKS Instruments reported a non-GAAP operating income of $175 million, up 82.3% year over year. The adjusted operating margin expanded 810 bps on a year-over-year basis to 20.2%.

Adjusted EBITDA was up 55% year over year to $217 million. Adjusted EBITDA margin widened 740 bps on a year-over-year basis to 25%.

Balance Sheet

As of Mar 31, 2024, MKS Instruments had cash and cash equivalents of $845 million compared with $875 million as of Dec 31, 2023.

Cash flow from operations was $67 million in the first-quarter 2024 compared with the fourth-quarter 2023 figure of $180 million.

Free cash flow was $49 million compared with $146 million reported in the previous quarter.

In the first quarter, the company paid a cash dividend of $15 million or 22 cents per share.

Guidance

MKSI expects second-quarter 2024 revenues of $860 million (+/- $40 million).

The company expects an Adjusted EBITDA of $197 million (+/- 23 million).

On a non-GAAP basis, MKSI expects earnings of 93 cents (+/- 26 cents) per share.

Zacks Rank & Stocks to Consider

Currently, MKSI has a Zacks Rank #3 (Hold).

MKSIโ€™s shares have gained 19.9% year to date compared with the Zacks Computer & Technology sectorโ€™s increase of 12.1%.

Here are some top-ranked stocks worth considering in the broader sector.

Akoustis Technologies AKTS, NVIDIA NVDA and Intrusion INTZ are some better-ranked stocks that investors can consider in the broader sector.

All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of todayโ€™s Zacks #1 Rank stocks here.

Akoustis Technologiesโ€™ shares have declined 31.6% year to date. AKTS is scheduled to release third-quarter fiscal 2024 results on May 13.

NVIDIA has surged 82.6% year to date. NVDA is scheduled to release first-quarter fiscal 2025 results on May 22.

Intrusionโ€™s shares have declined 69.6% year to date. INTZ is set to report first-quarter 2024 results on May 14.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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