NASDAQ$MKSI

MKS Instruments Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

MKS Instruments reported strong Q3 2021 results driven by semiconductor market growth and advanced markets growth, despite supply chain constraints.

MKS Instruments reported Q3 2021 revenue of $742 million, a 26% increase year-over-year. Non-GAAP net earnings were $155 million, up 45% year-over-year, and GAAP net income was $132 million, up 44% year-over-year. The company expects Q4 2021 revenue of $760 million, plus or minus $30 million, and Non-GAAP net earnings per diluted share of $2.85, plus or minus $0.26.

  • Revenue increased by 26% year-over-year to $742 million.
  • Semiconductor Market revenue grew by 36% year-over-year.
  • Non-GAAP net earnings increased by 45% year-over-year to $155 million.
  • The company anticipates the Atotech acquisition to close by the end of 2021.

Headline financials

Total Revenue

$742M

Previous: $590M+25.8%
EPS (adj)

$2.79

Previous: $1.93+44.6%
Operating Margin

27.1%

Previous: 19.7%+37.6%
Adjusted EBITDA

$222M

Previous: $154M+44.6%
Capital Expenditures

-$20.5M

Previous: -$29M+29.3%
Free Cash Flow

$112M

Previous: $62.7M+78.5%
Net Income

$132M

Previous: $91.7M+44.4%
Operating Income

$175M

Previous: $116M+50.6%
Gross Profit

$348M

Previous: $262M+33.0%
Cash & Equivalents

$633M

Previous: $424M+49.5%
Total Assets

$4.37B

Previous: $3.75B+16.4%
Stock-Based Comp

$9M

Previous: $7.4M+21.6%

Revenue & EPS history

MKS · Revenue · Quarterly

$742M

Q3 2021+25.8%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

MKS · $742M total across 2 segments · Q3 2021

  • Semiconductor
    $488M+35.9%
  • Electronics & Packaging
    $254M

Forward guidance

Based on current business levels and certain supply chain constraints and excluding any contribution from Atotech Limited, the Company expects revenue in the fourth quarter of 2021 of $760 million, plus or minus $30 million. At these volumes, the Company expects Non-GAAP net earnings per diluted share of $2.85, plus or minus $0.26.

Tailwinds

  • Revenue guidance for Q4 2021 is $760 million, plus or minus $30 million.
  • Non-GAAP net earnings per diluted share for Q4 2021 is expected to be $2.85, plus or minus $0.26.
  • The company's strong financial model.
  • The pending acquisition of Atotech is proceeding as planned.
  • The company expects the transaction to close by the end of 2021.

Headwinds

  • Guidance excludes any contribution from Atotech Limited.
  • Guidance is based on current business levels and certain supply chain constraints.
  • Manufacturing and sourcing risks, including supply chain disruptions and component shortages.
  • Fluctuations in capital spending in the semiconductor industry and other advanced manufacturing markets.
  • Challenges, risks and costs involved with integrating the operations of the companies we have acquired.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+0.8%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+2.2%

Avg return

30 days after

59%

40 / 68 earnings

Positive

+14.6%

Q3 2024

Best reaction

-17.1%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.3%+6.1%+2.6%
Q4 2025-4.8%-3.5%-13.6%
Q3 2025+11.1%+9.1%+16.5%
Q1 2025+3.9%+25.6%+19.3%
Q4 2024-6.6%-5.2%-22.4%
Q3 2024+14.6%+13.1%+13.5%
Q2 2024+3.3%+3.0%-1.9%
Q1 2024+3.5%-3.7%+4.0%
Q4 2023+5.8%+11.6%+18.7%
Q3 2023+0.8%+3.4%+28.2%
Q2 2023-5.8%-6.5%-6.3%
Q1 2023+2.1%+0.5%+17.1%
Q4 2022+5.9%+5.5%-5.5%
Q3 2022-17.1%-18.8%+0.5%
Q2 2022+8.9%+11.4%-4.6%
Q1 2022-7.8%-6.2%-1.7%
Q4 2021-6.8%-0.5%-3.1%
Q3 2021+2.2%+7.2%+8.7%
Q2 2021-1.2%-0.1%-4.0%
Q1 2021+1.1%-3.3%+0.6%
Q4 2020-5.7%-7.2%-6.9%
Q3 2020-0.8%-1.6%+23.7%
Q2 2020+4.0%+5.6%+0.1%
Q1 2020+12.4%-4.3%+7.5%
Q4 2019+1.5%-3.5%-9.9%
Q3 2019+14.2%+19.7%+7.0%
Q2 2019-3.1%-8.5%-13.0%
Q1 2019-10.4%-10.5%-28.4%
Q4 2018+2.4%+5.7%+4.2%
Q3 2018-5.3%-4.9%-1.7%
Q2 2018-10.4%-3.6%-10.4%
Q1 2018-2.3%-1.7%+7.1%
Q4 2017+7.2%+1.9%+12.4%
Q3 2017+1.5%+4.9%+2.7%
Q2 2017+3.5%+3.8%-0.4%
Q1 2017+6.7%+7.5%+8.1%
Q4 2016+0.5%+1.0%-2.3%
Q3 2016+1.3%+2.4%+17.5%
Q2 2016-0.7%-3.6%+1.8%
Q1 2016-0.1%
Q4 2015-1.9%
Q3 2015-5.1%
Q2 2015-0.3%
Q1 2015+4.9%
Q4 2014+4.4%
Q3 2014+4.3%
Q2 2014+1.3%
Q1 2014-0.0%
Q4 2013+4.8%
Q3 2013+3.5%
Q2 2013-1.0%
Q1 2013+2.0%
Q4 2012+0.8%
Q3 2012-2.1%
Q2 2012+2.9%
Q1 2012+2.3%
Q4 2011-1.6%
Q3 2011+1.4%
Q2 2011-7.3%
Q1 2010+3.6%
Q1 2011-1.0%
Q4 2008+6.0%
Q4 2010+6.0%
Q3 2010+2.9%
Q3 2009+2.9%
Q4 2009-3.0%
Q2 2009-3.0%
Q2 2010-3.0%

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