MKS Instruments Q1 Earnings Beat Estimates, Revenues Rise Y/Y

MKS Instruments MKSI reported first-quarter 2025 adjusted earnings of $1.71 per share, which beat the Zacks Consensus Estimate by 20.42% and jumped 45% year over year.Revenues of $936 million beat the consensus mark by 0.27% and increased 7.8% year over year.Products’ revenues (87.5% of total revenues) were $819 million, increased by 8.6% year over year. The figure beat the Zacks Consensus Estimate by 2.60%.Services revenues (12.5% of total revenues) increased 2.6% year over year to $117 million. The figure missed the Zacks Consensus Estimate by 1.47%. MKS Instruments, Inc. Price, Consensus and EPS Surprise MKS Instruments, Inc. price-consensus-eps-surprise-chart | MKS Instruments, Inc. Quote MKSI’s Q1 Details UpdateRevenues from the Semiconductor market (44.1% of total revenues) increased 17.7% year over year to $413 million. The figure beat the Zacks Consensus Estimate by 2.37%.Electronics & Packaging revenues (27% of total revenues) were $253 million, higher than the $208 million reported in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 10.36%.Specialty Industrial revenues (28.8% of total revenues) declined 12.6% year over year to $270 million. The figure missed the Zacks Consensus Estimate by 1.42%.MKSI’s Operating DetailsIn the first quarter of 2025, the adjusted gross margin contracted 40 basis points (bps) on a year-over-year basis to 47.4%.Adjusted EBITDA was up 8.8% year over year to $236 million. Adjusted EBITDA margin expanded 20 bps year over year to 25.2%.Research & development, as a percentage of revenues, declined 60 bps year over year. Sales, general & administrative expenses, as a percentage of revenues, increased 20 bps on a year-over-year basis.MKS Instruments reported a non-GAAP operating income of $189 million, up 8% year over year. The adjusted operating margin remained constant year over year at 20.2%.MKSI’s Balance SheetAs of March 31, 2025, MKS Instruments had cash and cash equivalents of $655 million compared with $714 million as of Dec. 31, 2024.Cash flow from operations was $141 million in the first quarter of 2025 compared with $176 million reported in the fourth quarter of 2024.Free cash flow was $123 million compared with $125 million reported in the fourth quarter of 2024.MKSI Offers Q2 GuidanceMKSI expects second-quarter 2025 revenues of $925 million (+/- $40 million).The company expects an adjusted EBITDA of $216 million (+/- 23 million).On a non-GAAP basis, MKSI expects earnings of $1.56 (+/- 28 cents) per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Zacks Rank & Stocks to ConsiderCurrently, MKSI carries a Zacks Rank #4 (Sell).Magnachip Semiconductor MX, Chegg CHGG and TaskUs TASK are some better-ranked stocks in the broader Zacks Computer and Technology sector.Magnachip Semiconductor sports a Zacks Rank #1 (Strong Buy) at present, while Chegg and TaskUs carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Magnachip Semiconductor, Chegg and TaskUs are scheduled to report their respective first-quarter 2025 results on May 12.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want 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 MKS Instruments, Inc. (MKSI): Free Stock Analysis Report Magnachip Semiconductor Corp. (MX): Free Stock Analysis Report Chegg, Inc. (CHGG): Free Stock Analysis Report TaskUs, Inc. (TASK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks