In This Article:
MKS Instruments MKSI reported adjusted earnings of $2.15 per share in fourth-quarter 2024, up from the year-ago quarter’s earnings of $1.17 per share. The figure beat the Zacks Consensus Estimate by 11.98%.
Revenues of $935 million beat the consensus mark by 2.68% and increased 4.7% year over year.
Products revenues (88.1% of total revenues) were $824 million, up 5% year over year. The figure beat the Zacks Consensus Estimate by 3.92%.
Services revenues (11.9% of total revenues) increased 2.8% year over year to $111 million. The figure missed the Zacks Consensus Estimate by 6.12%.
MKS Instruments, Inc. Price, Consensus and EPS Surprise
MKS Instruments, Inc. price-consensus-eps-surprise-chart | MKS Instruments, Inc. Quote
MKSI’s shares have lost 9% in the trailing 12-month period against the Zacks Computer & Technology sector’s growth of 21.7%. We believe the raised guidance will help MKSI stock to recover.
Quarterly Update
Revenues from the Semiconductor market (42.8% of total revenues) increased 10.5% year over year to $400 million. The figure beat the Zacks Consensus Estimate by 5.39%.
Electronics & Packaging revenues (27.2% of total revenues) were $254 million, higher than $226 million reported in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 6.66%.
Specialty Industrial revenues (30.1% of total revenues) declined 7.9% year over year to $281 million. The figure missed the Zacks Consensus Estimate by 4.12%.
Operating Details
In the fourth quarter, the adjusted gross margin expanded 110 basis points (bps) on a year-over-year basis to 47.2%.
Research & development, as a percentage of revenues, contracted 90 bps year over year. Sales, general & administrative expenses, as a percentage of revenues, expanded 90 bps on a year-over-year basis.
MKS Instruments reported a non-GAAP operating income of $199 million, up 9.3% year over year. The adjusted operating margin expanded 90 bps year over year to 21.3%.
Adjusted EBITDA was up 8.7% year over year to $237 million. Adjusted EBITDA margin expanded 90 bps year over year to 25.3%.
Balance Sheet
As of Dec. 31, 2024, MKS Instruments had cash and cash equivalents of $714 million compared with $861 million as of Sept. 30, 2024.
Cash flow from operations was $176 million in fourth-quarter 2024 compared with $163 million reported in the third quarter.
Free cash flow was $125 million compared with $141 million reported in the previous quarter.
In the fourth quarter, the company paid cash dividends of $15 million or 22 cents per share.