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. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Margins contracted across the board.
MKS Instruments tallied revenue of $141.6 million. The six analysts polled by S&P Capital IQ foresaw sales of $137.4 million on the same basis. GAAP reported sales were 26% lower than the prior-year quarter's $190.9 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 $0.07. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.04 per share. Non-GAAP EPS of $0.07 for Q1 were 84% lower than the prior-year quarter's $0.43 per share. GAAP EPS of $0.11 for Q1 were 74% lower than the prior-year quarter's $0.43 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 38.6%, 530 basis points worse than the prior-year quarter. Operating margin was 3.4%, much worse than the prior-year quarter. Net margin was 4.1%, 780 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $147.2 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $642.8 million. The average EPS estimate is $0.92.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 180 members out of 188 rating the stock outperform, and eight members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 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 buy, with an average price target of $32.33.
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