The 10-second takeaway
For the quarter ended March 31 (Q1), MKS Instruments beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
MKS Instruments recorded revenue of $190.9 million. The six analysts polled by S&P Capital IQ predicted revenue of $184.9 million on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $231.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.43. The eight earnings estimates compiled by S&P Capital IQ forecast $0.38 per share. GAAP EPS of $0.43 for Q1 were 41% lower than the prior-year quarter's $0.73 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.9%, 200 basis points worse than the prior-year quarter. Operating margin was 17.5%, 690 basis points worse than the prior-year quarter. Net margin was 11.9%, 450 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $189.0 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $775.0 million. The average EPS estimate is $1.73.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 180 members out of 186 rating the stock outperform, and six members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give MKS Instruments a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MKS Instruments is outperform, with an average price target of $32.92.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.