Can MKSI's Solid Q4 Earnings and 1Q25 View Push the Stock Higher?

MKS Instruments MKSI reported adjusted earnings of $2.15 per share in fourth-quarter 2024, up from the year-ago quarter’s earnings of $1.17 per share. The figure beat the Zacks Consensus Estimate by 11.98%.Revenues of $935 million beat the consensus mark by 2.68% and increased 4.7% year over year.Products revenues (88.1% of total revenues) were $824 million, up 5% year over year. The figure beat the Zacks Consensus Estimate by 3.92%.Services revenues (11.9% of total revenues) increased 2.8% year over year to $111 million. The figure missed the Zacks Consensus Estimate by 6.12%.MKS Instruments, Inc. Price, Consensus and EPS Surprise MKS Instruments, Inc. price-consensus-eps-surprise-chart | MKS Instruments, Inc. QuoteMKSI’s shares have lost 9% in the trailing 12-month period against the Zacks Computer & Technology sector’s growth of 21.7%. We believe the raised guidance will help MKSI stock to recover.Quarterly UpdateRevenues from the Semiconductor market (42.8% of total revenues) increased 10.5% year over year to $400 million. The figure beat the Zacks Consensus Estimate by 5.39%.Electronics & Packaging revenues (27.2% of total revenues) were $254 million, higher than $226 million reported in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 6.66%.Specialty Industrial revenues (30.1% of total revenues) declined 7.9% year over year to $281 million. The figure missed the Zacks Consensus Estimate by 4.12%.Operating DetailsIn the fourth quarter, the adjusted gross margin expanded 110 basis points (bps) on a year-over-year basis to 47.2%.Research & development, as a percentage of revenues, contracted 90 bps year over year. Sales, general & administrative expenses, as a percentage of revenues, expanded 90 bps on a year-over-year basis.MKS Instruments reported a non-GAAP operating income of $199 million, up 9.3% year over year. The adjusted operating margin expanded 90 bps year over year to 21.3%.Adjusted EBITDA was up 8.7% year over year to $237 million. Adjusted EBITDA margin expanded 90 bps year over year to 25.3%.Balance SheetAs of Dec. 31, 2024, MKS Instruments had cash and cash equivalents of $714 million compared with $861 million as of Sept. 30, 2024.Cash flow from operations was $176 million in fourth-quarter 2024 compared with $163 million reported in the third quarter.Free cash flow was $125 million compared with $141 million reported in the previous quarter.In the fourth quarter, the company paid cash dividends of $15 million or 22 cents per share.GuidanceMKSI expects first-quarter 2025 revenues of $910 million (+/- $40 million).The company expects an adjusted EBITDA of $217 million (+/- 23 million).On a non-GAAP basis, MKSI expects earnings of $1.40 (+/- 27 cents) per share.MKSI’s Zacks Rank & Stocks to ConsiderCurrently, MKSI carries a Zacks Rank #3 (Hold).Akami Technologies AKAM, Arista Networks ANET and Autohome ATHM are some better-ranked stocks that investors can consider in the broader sector. Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Akami Technologies shares have risen 5.7% year to date. AKAM is set to report its fourth-quarter 2024 results on Feb. 20.Arista Networks shares have lost 0.8% year to date. ANET is set to report its fourth-quarter 2024 results on Feb. 18.Autohome shares have gained 10.1% year to date. ATHM is set to report its fourth-quarter 2024 results on Feb. 20.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Akamai Technologies, Inc. (AKAM): Free Stock Analysis Report MKS Instruments, Inc. (MKSI): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Autohome Inc. (ATHM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks