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MKS Instruments (MKSI) Q4 Earnings Top Estimates, Revenues Up
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MKS Instruments (MKSI - Free Report) reported fourth-quarter 2022 adjusted earnings of $2 per share, which beat the Zacks Consensus Estimate by 52.67% but declined 33.8% year over year.
Revenues of $1.09 billion beat the consensus mark by 8.86% and increased 42% year over year.
Products revenues (88.9% of total revenues) were $965 million, up 44.5% year over year. Services revenues (11.1% of total revenues) increased 25% to $120 million.
Quarterly Update
Revenues from the semiconductor market (46.4% of total revenues) increased 1.6% year over year to $503 million. Top-line growth was negatively impacted by continued supply chain constraints, as well as newly enacted U.S. export restrictions.
Electronics & Packaging revenues (24.5% of total revenues) were $266 million, significantly higher than $73 million reported in the previous quarter.
Specialty Industrial (29.1% of total revenues) jumped 61.2% year over year to $316 million.
MKS Instruments, Inc. Price, Consensus and EPS Surprise
Segment-wise, Vacuum and Analysis (43.8% of total revenues) revenues declined 2.1% year over year to $475 million.
Photonics division revenues (24.9% of total revenues) decreased 3.2% year over year to $270 million.
Materials Solutions segment revenues (31.3% of total revenues) were $340 million in the reported quarter.
Operating Details
In the fourth quarter, the adjusted gross margin contracted 60 basis points (bps) on a year-over-year basis to 45.9%.
Adjusted EBITDA increased 23.7% year over year to $282 million. Adjusted EBITDA margin expanded 620 bps on a year-over-year basis to 26%.
Research & development, and sales, general & administrative expenses, as a percentage of revenues, surged 230 bps and 710 bps on a year-over-year basis, respectively.
MKS Instruments reported a non-GAAP operating income of $257 million, up 24.2% year over year. However, the adjusted operating margin contracted 340 bps on a year-over-year basis to 23.7%.
Balance Sheet
As of Dec 31, 2022, MKS Instruments had cash and cash equivalents of $909 million compared with $884 million as of Sep 30, 2022.
Cash flow from operations was $184 million in the fourth quarter compared with the third-quarter 2022 figure of $199 million.
Free cash flow was $130 million compared with $173 million reported in the previous quarter.
Zacks Rank & Stocks to Consider
Currently, MKS Instruments has a Zacks Rank #3 (Hold).
MKSI shares have declined 36.8% compared with the Zacks Computer and Technology sector’s decline of 19.5% in the past year.
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MKS Instruments (MKSI) Q4 Earnings Top Estimates, Revenues Up
MKS Instruments (MKSI - Free Report) reported fourth-quarter 2022 adjusted earnings of $2 per share, which beat the Zacks Consensus Estimate by 52.67% but declined 33.8% year over year.
Revenues of $1.09 billion beat the consensus mark by 8.86% and increased 42% year over year.
Products revenues (88.9% of total revenues) were $965 million, up 44.5% year over year. Services revenues (11.1% of total revenues) increased 25% to $120 million.
Quarterly Update
Revenues from the semiconductor market (46.4% of total revenues) increased 1.6% year over year to $503 million. Top-line growth was negatively impacted by continued supply chain constraints, as well as newly enacted U.S. export restrictions.
Electronics & Packaging revenues (24.5% of total revenues) were $266 million, significantly higher than $73 million reported in the previous quarter.
Specialty Industrial (29.1% of total revenues) jumped 61.2% year over year to $316 million.
MKS Instruments, Inc. Price, Consensus and EPS Surprise
MKS Instruments, Inc. price-consensus-eps-surprise-chart | MKS Instruments, Inc. Quote
Segment-wise, Vacuum and Analysis (43.8% of total revenues) revenues declined 2.1% year over year to $475 million.
Photonics division revenues (24.9% of total revenues) decreased 3.2% year over year to $270 million.
Materials Solutions segment revenues (31.3% of total revenues) were $340 million in the reported quarter.
Operating Details
In the fourth quarter, the adjusted gross margin contracted 60 basis points (bps) on a year-over-year basis to 45.9%.
Adjusted EBITDA increased 23.7% year over year to $282 million. Adjusted EBITDA margin expanded 620 bps on a year-over-year basis to 26%.
Research & development, and sales, general & administrative expenses, as a percentage of revenues, surged 230 bps and 710 bps on a year-over-year basis, respectively.
MKS Instruments reported a non-GAAP operating income of $257 million, up 24.2% year over year. However, the adjusted operating margin contracted 340 bps on a year-over-year basis to 23.7%.
Balance Sheet
As of Dec 31, 2022, MKS Instruments had cash and cash equivalents of $909 million compared with $884 million as of Sep 30, 2022.
Cash flow from operations was $184 million in the fourth quarter compared with the third-quarter 2022 figure of $199 million.
Free cash flow was $130 million compared with $173 million reported in the previous quarter.
Zacks Rank & Stocks to Consider
Currently, MKS Instruments has a Zacks Rank #3 (Hold).
MKSI shares have declined 36.8% compared with the Zacks Computer and Technology sector’s decline of 19.5% in the past year.
MongoDB (MDB - Free Report) , Samsara (IOT - Free Report) , and Methode Electronics (MEI - 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 (Strong Buy) stocks here.
MongoDB shares have declined 45.1% in the past year. MDB is set to report its fourth-quarter fiscal 2023 results on Mar 8.
Samsara shares have gained 0.6% in the past year. IOT is set to report its fourth-quarter fiscal 2023 results on Mar 2.
Methode Electronics shares have gained 7.7% in the past year. MEI is set to report its third-quarter fiscal 2023 results on Mar 9.