The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MKS Instruments beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped significantly. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Margins shrank across the board.
MKS Instruments recorded revenue of $133.8 million. The seven analysts polled by S&P Capital IQ expected to see revenue of $125.2 million on the same basis. GAAP reported sales were 22% lower than the prior-year quarter's $171.7 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 $0.10. The seven earnings estimates compiled by S&P Capital IQ averaged -$0.01 per share. GAAP EPS of $0.08 for Q4 were 81% lower than the prior-year quarter's $0.42 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 39.3%, 490 basis points worse than the prior-year quarter. Operating margin was 5.2%, 1,230 basis points worse than the prior-year quarter. Net margin was 3.1%, 1,010 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $126.1 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $612.4 million. The average EPS estimate is $0.84.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 176 members out of 183 rating the stock outperform, and seven members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give MKS Instruments a green thumbs-up, and one give 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 $26.43.
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