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Mks Instruments (NASDAQ: MKSI) Gains Momentum with Solid Quarter and Positive Guidance

By Don Francis, Editor
February 10, 2024 11:29 AM UTC
Mks Instruments (NASDAQ: MKSI) Gains Momentum with Solid Quarter and Positive Guidance

KeyBanc's Steve Barger raised their price target on Mks Instruments (NASDAQ: MKSI) by 21.7% from $115 to $140 on 2024/02/09. The analyst maintained their Strong Buy rating on the stock.

In spite of some gloom, Mks Instruments had a "solid" quarter, and management offered better-than-expected guidance in their "reasonably optimistic" earnings call that highlighted both short- and long-term potential, Barger said in an assessment of the company's 2024/02/07-dated Q4 and FY 2023 print and earnings call.

The analyst believes that the most detrimental changes have been finalized and that a beat-and-raise cycle, with additional EPS upside from deleveraging, will be the next phase.

MKS Instruments reported: For Q4 2023: * EPS of $1.17, which beat the Zacks Consensus Estimate of $0.89 but missed Q4 2022’s $2.00 by 41.5%. * Revenue of $893M, which beat the Zacks Consensus Estimate of $844.5M and missed Q4 2022’s $1.09B by 17.7%.

For FY 2023: * EPS of $4.43, which missed the Zacks Consensus Estimate of $9.97 by 55.5%. * Revenue of $3.62B, which beat the Zacks Consensus Estimate of $3.55B by 2%.

Management guided for Q1 2024: * EPS of $0.47 to $0.97. * Revenue of $800M to $880M. * Adjusted EBITDA of $160M to $204M.

President & CEO John T.C. Lee commented: “We closed the year on a solid note with revenue and adjusted EBITDA exceeding the high-end of our guidance range. We believe our broad portfolio of proprietary and foundational solutions puts us in pole position to capture a wide array of opportunities when end market conditions improve, setting the stage for attractive shareholder value creation in the years to come.”

Benchmark's Mark Miller also issued an update on MKSI on 2024/02/09. That analyst raised their price target by 52.9%, from $85 to $130, and maintained their Strong Buy rating on the stock.

100% of top-rated analysts currently rate MKSI as a Strong Buy or Buy, no analysts see it as a Hold, and no analysts either recommend or strongly recommend selling the stock.

Since MKSI's latest quarterly report on 2024/02/07, the stock price is up 10.9%. Year-over-year, the stock is up 17.6%. During that period, MKSI is trailing the S&P 500, which is up 23.2%.

KeyBanc analyst Steve Barger is ranked by WallStreetZen in the top 5% out of 4,470 Wall Street analysts, with an average return of 16.2% and a 63.2% win rate. They specialize in the Energy and Industrials sectors, among others.

MKS Instruments, Inc. provides instruments, systems, subsystems, and process control solutions that measure, monitor, deliver, analyze, power, and control critical parameters of manufacturing processes worldwide. Its Vacuum & Analysis segment offers pressure and vacuum control solutions, including direct and indirect pressure measurement; materials delivery solutions comprising flow and valve technologies, as well as integrated pressure measurement and control subsystems, which provide customers with precise control capabilities; power solutions products, such as microwave, power delivery systems, radio frequency matching networks, and metrology products used in providing energy to etching, stripping, and deposition processes; and plasma and reactive gas products. Its Light & Motion segment offers laser products, such as continuous wave and pulsed nanosecond, diode and diode-pumped solid-state, and fiber laser technologies; and photonics products comprising motion control, optical tables and vibration isolation systems, photonic instruments, optics and optical assemblies, opto-mechanical components, temperature sensing products for wafer fabrication systems, and laser and LED measurement products, including laser power and energy meters, laser beam profilers, and optical and photonic subsystems. Its Equipment & Solutions segment provides laser-based systems for printed circuit board (PCB) manufacturing, including flexible interconnect PCB processing systems and high-density interconnect solutions for rigid PCB manufacturing and substrate processing, and multi-layer ceramic capacitor test systems. It serves semiconductor, industrial technologies, life and health sciences, research, and defense markets. It sells its products and services through its direct sales organization, independent distributors, and sales representatives, as well as through its websites and product catalogs. The company was incorporated in 1961 and is headquartered in Andover, Massachusetts.

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