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MKS Instruments (MKSI) Q1 Earnings Top Estimates, Revenues Up
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MKS Instruments (MKSI - Free Report) reported adjusted earnings of $1.18 per share in first-quarter 2024, up from the year-ago quarter’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
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).
MKSI’s shares have gained 19.9% year to date compared with the Zacks Computer & Technology sector’s increase of 12.1%.
Here are some top-ranked stocks worth considering in the broader sector.
Akoustis Technologies (AKTS - Free Report) , NVIDIA (NVDA - Free Report) and Intrusion (INTZ - Free Report) are some better-ranked stocks that investors can consider in the broader sector.
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MKS Instruments (MKSI) Q1 Earnings Top Estimates, Revenues Up
MKS Instruments (MKSI - Free Report) reported adjusted earnings of $1.18 per share in first-quarter 2024, up from the year-ago quarter’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
MKS Instruments, Inc. price-consensus-eps-surprise-chart | MKS Instruments, Inc. Quote
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).
MKSI’s shares have gained 19.9% year to date compared with the Zacks Computer & Technology sector’s increase of 12.1%.
Here are some top-ranked stocks worth considering in the broader sector.
Akoustis Technologies (AKTS - Free Report) , NVIDIA (NVDA - Free Report) and Intrusion (INTZ - Free Report) 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 today’s Zacks #1 Rank stocks here.
Akoustis Technologies’ 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.
Intrusion’s shares have declined 69.6% year to date. INTZ is set to report first-quarter 2024 results on May 14.