A month has gone by since the last earnings report for MKS Instruments (MKSI) . Shares have lost about 1.3% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is MKS Instruments due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. MKS Instruments Q2 Earnings Top Estimates, ...

Financial Data and Key Metrics Changes - MKS reported revenue of $887 million for Q2 2024, up 2% sequentially and at the high end of guidance, with EPS of $1.53, exceeding guidance [4][16] - Gross margin was 47.3%, reflecting strong financial execution and cost control, although it was down sequentially due to product mix and startup costs [18][21] - Operating income was $192 million, yielding an operating margin of 21.7%, above guidance [19] Business Line Data and Key Metrics Changes - Semiconductor revenue increased 5% sequentially to $369 million, driven by in-quarter demand conversion [16][24] - Electronics & Packaging revenue was $229 million, up 10% quarter-over-quarter, led by seasonal strength in chemistry and higher equipment sales [16][24] - Specialty Industrial market revenue decreased about 7% sequentially to $289 million, reflecting softness in vacuum and photonics products [12][17] Market Data and Key Metrics Changes - In the semiconductor market, early signs of improvement were noted, particularly in DRAM and Logic/Foundry segments [7][8] - Electronics & Packaging demand is primarily driven by investments in AI servers, although overall demand remains muted in PCs and smartphones [10][11] - Specialty Industrial market is stable but can be lumpy due to various end markets served [13][37] Company Strategy and Development Direction - MKS is focused on leveraging its proprietary product portfolio to gain market share, particularly in semiconductor and advanced packaging markets [6][15] - The company is investing in world-class optics to enhance its capabilities in lithography, metrology, and inspection applications [9][32] - MKS aims to drive profitable growth and improved cash generation while managing costs effectively [14][19] Management's Comments on Operating Environment and Future Outlook - Management noted muted market demand but expressed confidence in the company's positioning for future recovery [6][24] - The outlook for Q3 2024 anticipates revenue of $870 million, reflecting a continued slow path to market recovery [23][24] - Management expects second-half revenue to be relatively in line with first-half levels, indicating a cautious approach to market conditions [24][49] Other Important Information - The company closed the quarter with over $1.5 billion in liquidity, including cash and undrawn credit facilities [21][22] - MKS executed a $1.4 billion convertible note offering, which is expected to save over $75 million in annualized cash interest [20][22] Q&A Session Summary Question: Can you talk about the gross margin improvement? - Management indicated that gross margin reflects the proprietary nature of products and a favorable product mix, with some headwinds in specific divisions [26] Question: Are you seeing indications of NAND spending picking up? - Management noted that NAND spending seems to be delayed, and the market is still at the bottom [27] Question: How do you reconcile strong customer growth with muted trends? - Management explained that shorter lead times limit visibility, and in-quarter demand conversions are more unpredictable [30] Question: Can you provide more details on the strategic photonics win? - Management highlighted that this win is part of a multiyear strategy and is expected to contribute to growth as production ramps up [31] Question: How is the specialty industrial business trending? - Management views the specialty industrial market as stable but noted that it can be lumpy due to various sub-segments [36][37] Question: What is the outlook for the Electronics & Packaging business related to AI? - Management confirmed ongoing momentum in AI-related demand, although it still represents a small portion of the overall market [38] Question: What are the drivers behind the E&P performance in Q2? - Management stated that chemistry sales were the primary driver of the uptick in E&P performance [41] Question: How does new equipment sales impact consumables? - Management explained that consumables revenue is significantly lower than equipment sales but can provide long-term revenue opportunities [55]

MKS Instruments (MKSI) reported adjusted earnings of $1.53 per share in second-quarter 2024, up from the year-ago quarter's earnings of $1.32 per share. The figure beat the Zacks Consensus Estimate by 50%. Revenues of $887 million beat the consensus mark by 2.73% but declined 11.6% year over year. Products revenues (86.8% of total revenues) were $770 million, down 13% year over year. Services revenues (13.2% of total revenues) dropped 0.8% year over year to $117 million. Quarterly Update Revenues from the S ...

| --- | --- | --- | --- | |----------------------------------------|-------|-------|---------------------------------------| | | | | | | | | | | | Second Quarter 2024 Financial Results | | | MKS Instruments, Inc. August 8, 2024 | | | | | | Safe Harbor for Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 ...

Quarterly revenue of $887 million, at the high end of guidance Quarterly GAAP net income of $23 million and net income per share of $0.33 Quarterly Adjusted EBITDA of $228 million and Non-GAAP net earnings per diluted share of $1.53, exceeding the high-end of guidance ANDOVER, Mass., Aug. 07, 2024 (GLOBE NEWSWIRE) -- MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of enabling technologies that transform our world, today reported second quarter 2024 financial results. "Our continued execution, especi ...

For Immediate Release Chicago, IL – August 7, 2024 – Today, Zacks Equity Research discusses MKS Instruments (MKSI) and Veeco Instruments (VECO) . Industry: Electronics - Manufacturing Machinery Link to article: https://www.zacks.com/commentary/2317317/2-electronics-stocks-to-buy-from-a-prosperingindustry 2 Electronics Stocks to Buy From a Prospering Industry The Zacks Electronics - Manufacturing Machinery industry is suffering from challenging macroeconomic conditions globally. Softness in the 3D NAND end-m ...

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MKS Instruments (MKSI) shares ended the last trading session 5.6% higher at $125.90. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 10.1% loss over the past four weeks. MKS Instruments is benefiting from strong portfolio and prudent cost control. It is gaining from the growing adoption of its solutions which are used in the majority of the steps needed to manufacture a semiconductor chip. This maker of analysis an ...

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ESG Commitments and Progress - The company has committed to reducing its combined Scope 1 and 2 emissions by 42% by 2030 from its 2022 baseline, aligning with the Science Based Targets Initiative (SBTi) criteria [5] - The company is developing its consolidated Scope 3 emissions inventory with the goal of setting SBTi-aligned Scope 3 emissions targets, which will be submitted to SBTi for validation [5] - The company has expanded its sustainable product portfolio with innovative solutions and established a dedicated team to quantify the carbon footprints of its products and processes [5] Employee Engagement and Recognition - The company conducted its third annual global employee engagement survey, which included participation from Atotech employees post-acquisition [5] - The company launched its inaugural Employee Resource Group, Women@MKS, highlighting its focus on employee experience [5] - The company received external recognition for its sustainability efforts and responsible business practices from MSCI, Sustainalytics, and Newsweek and Statista [5] Business Overview and Technology Solutions - The company provides foundational technology solutions to leading-edge semiconductor manufacturing, electronics and packaging, and specialty industrial applications [6] - The company's solutions improve process performance, optimize productivity, and enable unique innovations for many of the world's leading technology and industrial companies [6] - The company's solutions address challenges in advanced device manufacturing, such as miniaturization and complexity, by enabling increased power, speed, feature enhancement, and optimized connectivity [6] Reporting and Disclosures - The company's ESG Report includes relevant disclosures related to the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD) standards [7]