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MKS Instruments (MKSI) Q4 Earnings Top Estimates, Revenues Up
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MKS Instruments (MKSI - Free Report) reported adjusted earnings of $1.17 per share in fourth-quarter 2023, beating the Zacks Consensus Estimate by 31.46% and declining 41.5% year over year.
Revenues of $893 million beat the consensus mark by 5.74% and declined 17.7% year over year.
Products revenues (87.9% of total revenues) were $785 million, down 18.7% year over year. Services revenues (12.1% of total revenues) fell 10% year over year to $108 million.
MKS Instruments, Inc. Price, Consensus and EPS Surprise
Revenues from the semiconductor market (40.5% of total revenues) declined 28% year over year to $362 million. Top-line growth was affected by persistent supply chain constraints and a challenging macroeconomic environment.
Electronics & Packaging revenues (25.3% of total revenues) were $226 million, lower than $266 million reported in the year-ago quarter.
Specialty Industrial revenues (34.2% of total revenues) dropped 3.5% year over year to $305 million.
Operating Details
In the fourth quarter, the adjusted gross margin expanded 10 basis points (bps) on a year-over-year basis to 46%.
Research & development and sales, general & administrative expenses, as a percentage of revenues, surged 110 bps and 240 bps on a year-over-year basis, respectively.
MKS Instruments reported a non-GAAP operating income of $182 million, down 29.2% year over year. The adjusted operating margin contracted 330 bps on a year-over-year basis to 20.4%.
Adjusted EBITDA fell 26.6% year over year to $218 million. Adjusted EBITDA margin contracted 30 bps on a year-over-year basis to 24.4%.
Balance Sheet
As of Dec 31, 2023, MKS Instruments had cash and cash equivalents of $875 million compared with $909 million as of Dec 31, 2022.
Cash flow from operations was $180 million in the fourth quarter compared with the third-quarter 2023 figure of $160 million.
Free cash flow was $146 million compared with $142 million reported in the previous quarter.
In the fourth quarter, the company paid a cash dividend of $15 million or 22 cents per share.
Guidance
MKSI expects first-quarter 2024 revenues of $840 million (+/- $40 million).
The company expects an Adjusted EBITDA of $182 million (+/- 22 million).
On a non-GAAP basis, MKSI expects earnings of 72 cents (+/- 25 cents) per share.
Zacks Rank & Stocks to Consider
Currently, MKS Instruments has a Zacks Rank #3 (Hold).
MKSI has returned 5% compared with the Zacks Computer and Technology sector’s rise of 5.7% year to date.
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MKS Instruments (MKSI) Q4 Earnings Top Estimates, Revenues Up
MKS Instruments (MKSI - Free Report) reported adjusted earnings of $1.17 per share in fourth-quarter 2023, beating the Zacks Consensus Estimate by 31.46% and declining 41.5% year over year.
Revenues of $893 million beat the consensus mark by 5.74% and declined 17.7% year over year.
Products revenues (87.9% of total revenues) were $785 million, down 18.7% year over year. Services revenues (12.1% of total revenues) fell 10% year over year to $108 million.
MKS Instruments, Inc. Price, Consensus and EPS Surprise
MKS Instruments, Inc. price-consensus-eps-surprise-chart | MKS Instruments, Inc. Quote
Quarterly Update
Revenues from the semiconductor market (40.5% of total revenues) declined 28% year over year to $362 million. Top-line growth was affected by persistent supply chain constraints and a challenging macroeconomic environment.
Electronics & Packaging revenues (25.3% of total revenues) were $226 million, lower than $266 million reported in the year-ago quarter.
Specialty Industrial revenues (34.2% of total revenues) dropped 3.5% year over year to $305 million.
Operating Details
In the fourth quarter, the adjusted gross margin expanded 10 basis points (bps) on a year-over-year basis to 46%.
Research & development and sales, general & administrative expenses, as a percentage of revenues, surged 110 bps and 240 bps on a year-over-year basis, respectively.
MKS Instruments reported a non-GAAP operating income of $182 million, down 29.2% year over year. The adjusted operating margin contracted 330 bps on a year-over-year basis to 20.4%.
Adjusted EBITDA fell 26.6% year over year to $218 million. Adjusted EBITDA margin contracted 30 bps on a year-over-year basis to 24.4%.
Balance Sheet
As of Dec 31, 2023, MKS Instruments had cash and cash equivalents of $875 million compared with $909 million as of Dec 31, 2022.
Cash flow from operations was $180 million in the fourth quarter compared with the third-quarter 2023 figure of $160 million.
Free cash flow was $146 million compared with $142 million reported in the previous quarter.
In the fourth quarter, the company paid a cash dividend of $15 million or 22 cents per share.
Guidance
MKSI expects first-quarter 2024 revenues of $840 million (+/- $40 million).
The company expects an Adjusted EBITDA of $182 million (+/- 22 million).
On a non-GAAP basis, MKSI expects earnings of 72 cents (+/- 25 cents) per share.
Zacks Rank & Stocks to Consider
Currently, MKS Instruments has a Zacks Rank #3 (Hold).
MKSI has returned 5% compared with the Zacks Computer and Technology sector’s rise of 5.7% year to date.
Blackline (BL - Free Report) , AvidXchange (AVDX - Free Report) and Shopify (SHOP - Free Report) are some better-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Blackline’s shares have declined 3.5% in the year-to-date period. BL is set to report its fourth-quarter 2023 results on Feb 13.
AvidXchange’s shares have declined 6.4% in the year-to-date period. AVDX is set to report its fourth-quarter 2023 results on Feb 28.
Shopify’s shares have gained 9.3% in the year-to-date period. SHOP is set to report its fourth-quarter 2023 results on Feb 13.