MKS Instruments shares rose 9% after the company reported third-quarter results above analyst estimates and forecast fourth-quarter earnings and revenue substantially ahead of consensus expectations.
The company posted adjusted earnings of $4.18 per share, compared with analysts’ $3.63 estimate. Revenue reached $1.41 billion, topping the $1.35 billion forecast and rising 43% from $988 million a year earlier.
Growth was led by the Semiconductor segment, where revenue increased 54% year over year to $638 million. Electronics & Packaging revenue grew 43% to $415 million, while Specialty Industrial contributed $360 million.
For the fourth quarter, MKS projected adjusted earnings per share of $4.62 to $5.38, with a midpoint of $5.00, against analyst consensus of $3.04. Its revenue forecast of $1.45 billion to $1.53 billion has a midpoint of $1.49 billion, above the $1.4 billion estimate.
Third-quarter GAAP net income was $236 million, or $3.26 per diluted share. Adjusted EBITDA came to $434 million, and gross margin rose to 47.7% from 46.6% in the same quarter last year. The adjusted operating margin expanded to 27.8%, up from 20.8%.
MKS ended the quarter with $676 million in cash and cash equivalents. In November, it also made a voluntary $100 million principal prepayment on its term loan.
Sources: Investing.com News.