MKSI Earnings Prediction
The chart below shows how MKSI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MKSI sees a +3.67% change in stock price 10 days leading up to the earnings, and a +4.54% change 10 days following the report. On the earnings day itself, the stock moves by -0.73%. This data can give you a slight idea of what to expect for the next quarter's release.
MKSI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
896.00M
-3.86%
1.01%
Gross Margin
41.41%
7.81%
2.60%
Operating Margin
14.73%
14.36%
-0.27%
Net Margin
6.92%
65.55%
167.18%
EPS
0.92
58.62%
170.59%
No Data Available
MKSI Earnings Analysis
MKS Instruments Inc Corporation (MKSI.O) Earnings Conference Call
Positive
Quarterly Revenue Performance: 1. Strong Revenue Growth: MKS reported third quarter revenue of $896 million, up 1% sequentially and at the high end of guidance, driven by better-than-expected semiconductor and electronics packaging revenue.
Semiconductor Revenue Increase: 2. Robust Semiconductor Performance: Semiconductor revenue reached $378 million, a 3% increase both sequentially and year-over-year, exceeding expectations due to strong demand in DRAM and Logic/Foundry applications.
Strong Gross Margin Performance: 3. High Gross Margin: The company achieved a gross margin of 48.2%, which was above the high end of guidance, reflecting a favorable product mix and operating leverage on higher revenues.
Free Cash Flow Strength: 4. Strong Free Cash Flow Generation: MKS generated free cash flow of $141 million, representing nearly 16% of revenue, showcasing the company's cash flow generation potential even in a soft market environment.
Debt Reduction Progress: 5. Effective Debt Management: MKS made significant progress in debt reduction, with year-to-date prepayments totaling $426 million, supported by strong free cash flow generation.
Negative
Specialty Industrial Revenue Decline: 1. Declining Specialty Industrial Revenue: Specialty Industrial market revenues decreased approximately 1% sequentially and 11% year-over-year, indicating ongoing weakness in the life and health sciences market.
Electronics and Packaging Decline: 2. Weak Electronics and Packaging Performance: Despite a 1% sequential growth in electronics and packaging revenue, year-over-year sales were down 5%, primarily due to fluctuating palladium prices and variability in equipment sales.
Debt Leverage Concerns: 3. High Debt Levels: MKS exited the quarter with gross debt of $4.9 billion and a net leverage ratio of 4.5 times based on trailing twelve-month adjusted EBITDA, highlighting significant leverage concerns.
Semiconductor Market Challenges: 4. Muted Semiconductor Market Outlook: The company anticipates semiconductor revenue to be flattish in Q4, with NAND demand remaining at historically low levels, reflecting ongoing market challenges.
Operating Expenses Outlook: 5. Increased Operating Expenses: Operating expenses are expected to increase modestly from Q3 levels due to compensation costs and third-party spending, which could pressure margins in the upcoming quarters.
MKSI FAQs
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MKSI Earning Call Sentiment
MKS Instruments, Inc. (MKSI) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
MKSI.O
-1.95%Positive
The earnings call summary indicates strong financial performance with net earnings and free cash flow exceeding guidance. The Q&A section highlights strategic wins in photonics and a positive outlook for 2025, despite some muted demand in NAND and automotive sectors. The financial health is stable with reduced interest expenses and a manageable debt level. The guidance is slightly weak but offset by strategic initiatives and market opportunities. Overall, the sentiment is positive with potential for stock price increase in the short term.
