MKS Q3 revenue beats estimates on semiconductor growth; lifts Q4 revenue outlook
Overview
U.S. semiconductor equipment supplier's Q3 revenue jumped 43% yr/yr, beating analyst expectations
Adjusted EPS for Q3 reached record $4.18, above company guidance
Growth was led by 54% yr/yr gains in Semiconductor revenue and 43% growth in Electronics & Packaging
Outlook
Company sees Q4 revenue of $1.49 bln, plus or minus $40 mln
Company projects Q4 non-GAAP EPS of $5.00, plus or minus $0.38
Q4 guidance excludes the pending Ophir Optics sale and tariff actions after the release date
Company expects Q4 adjusted EBITDA of $461 mln, plus or minus $29 mln
Result Drivers
END-MARKET GROWTH - Co said revenue growth was led by 54% yr/yr gain in Semiconductor and 43% in Electronics & Packaging, per CEO John T.C. Lee
SCALE BENEFITS - Co attributed margin expansion and earnings growth to scale benefits from higher revenue
MARGIN EXPANSION - GAAP operating margin rose to 23.1% from 14.0%, while adjusted EBITDA margin increased to 30.7% from 24.3%
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $1.41 bln | $1.36 bln (12 Analysts) |
Q3 EPS | $3.26 | ||
Q3 Net Income | $236 mln | ||
Q3 Pretax Profit | $287 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for MKS Incorporated is $390.00, about 90.1% above its November 3 closing price of $205.18
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 21 three months ago
Reuters Recommended Reads
Nov 2 - Israel's Tower Semi Q3 revenue growth of 33% tops estimates, sees faster Q4 growth
Nov 2 - Advanced Energy Q3 revenue beats on record semiconductor and data center computing sales
Nov 2 - Chipmaker Onsemi revises Synaptics deal, Q3 results beat
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)