We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MKS Instruments (MKSI - Free Report) reported second-quarter 2018 adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.22 and surged 65% year over year.
Revenues of $573 million surpassed the Zacks Consensus Estimate of $570 million and came in 19% higher than the year-ago figure.
Quarter Details
Products revenues (89% of total revenues) were $510 million, up approximately 20% from the year-ago quarter. Services revenues (11%) increased 16% year over year to $63 million.
Sales to semiconductor customers increased 19% year over year to $336 million. Sales to advanced markets were $237 million, up 19% from the year-ago quarter.
The company’s Vacuum and Analysis segment reported sales of $368 million, an increase of 19% year over year. Sales from the Light and Motion Division were $205 million, up 20% from the prior-year period.
Operating Details
MKS Instruments’ gross profit margin for the quarter came in at approximately 48%, expanding 210 basis points (bps) year over year.
Research & development and sales, general & administrative expenses as a percentage of revenues declined 64 bps and 168 bps, respectively year over year.
The company reported non-GAAP operating income of $162.2 million in the quarter, up 40.4% from the year-ago quarter.
Adjusted operating margin in the reported quarter was 28.3%, which expanded 430 bps on a year-over-year basis.
MKS Instruments exited the quarter with cash and cash equivalents of $427.43 compared with $340.89 million as of Mar 31, 2018.
Long-term debt was $342.09 million, up from $341.3 million as of Mar 31, 2018.
As of Jun 30, 2018, cash from operating activities was $109.61 million compared with $72.77 million in the previous quarter.
Outlook
MKS Instruments anticipates to report revenues in the range of $470-$510 million and adjusted earnings in the range of $1.60-$1.86 per share for third-quarter 2018.
Zacks Rank & Stocks to Consider
Currently, MKS Instruments carries a Zacks Rank #3 (Hold).
Long-term earnings growth rate for Micron, Intel and Entegris is projected to be 8%, 8.4% and 11.3%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
MKS Instruments (MKSI) Q2 Earnings & Revenues Beat Estimates
MKS Instruments (MKSI - Free Report) reported second-quarter 2018 adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.22 and surged 65% year over year.
Revenues of $573 million surpassed the Zacks Consensus Estimate of $570 million and came in 19% higher than the year-ago figure.
Quarter Details
Products revenues (89% of total revenues) were $510 million, up approximately 20% from the year-ago quarter. Services revenues (11%) increased 16% year over year to $63 million.
Sales to semiconductor customers increased 19% year over year to $336 million. Sales to advanced markets were $237 million, up 19% from the year-ago quarter.
The company’s Vacuum and Analysis segment reported sales of $368 million, an increase of 19% year over year. Sales from the Light and Motion Division were $205 million, up 20% from the prior-year period.
Operating Details
MKS Instruments’ gross profit margin for the quarter came in at approximately 48%, expanding 210 basis points (bps) year over year.
Research & development and sales, general & administrative expenses as a percentage of revenues declined 64 bps and 168 bps, respectively year over year.
The company reported non-GAAP operating income of $162.2 million in the quarter, up 40.4% from the year-ago quarter.
Adjusted operating margin in the reported quarter was 28.3%, which expanded 430 bps on a year-over-year basis.
MKS Instruments, Inc. Price and Consensus
MKS Instruments, Inc. Price and Consensus | MKS Instruments, Inc. Quote
Balance Sheet & Cash Flow
MKS Instruments exited the quarter with cash and cash equivalents of $427.43 compared with $340.89 million as of Mar 31, 2018.
Long-term debt was $342.09 million, up from $341.3 million as of Mar 31, 2018.
As of Jun 30, 2018, cash from operating activities was $109.61 million compared with $72.77 million in the previous quarter.
Outlook
MKS Instruments anticipates to report revenues in the range of $470-$510 million and adjusted earnings in the range of $1.60-$1.86 per share for third-quarter 2018.
Zacks Rank & Stocks to Consider
Currently, MKS Instruments carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include Micron (MU - Free Report) , Intel (INTC - Free Report) and Entegris (ENTG - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Long-term earnings growth rate for Micron, Intel and Entegris is projected to be 8%, 8.4% and 11.3%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>