NASDAQ$MKSI

MKS Instruments Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported record quarterly revenue and exceeded guidance

MKS Instruments reported record quarterly revenue of $1.09 billion, up 42% year-over-year, exceeding the high-end of guidance. Quarterly GAAP net income per diluted share was $0.81 and quarterly Non-GAAP net earnings per diluted share was $2.00, also exceeding the high-end of guidance. The company's manufacturing and service operations are in the recovery phase following a ransomware incident.

  • Record quarterly revenue of $1.09 billion, up 42% year-over-year, exceeding the high-end of guidance
  • Quarterly GAAP net income per diluted share of $0.81 and quarterly Non-GAAP net earnings per diluted share of $2.00, exceeding the high-end of guidance
  • Quarterly GAAP net income of $54 million and quarterly Adjusted EBITDA of $282 million, exceeding the high-end of guidance
  • Quarterly operating cash flow of $184 million and free cash flow of $130 million

Headline financials

Total Revenue

$1.09B

Previous: $764M+42.0%
EPS (adj)

$2.00

Previous: $3.02-33.8%
Gross Margin

44.7%

Previous: 46.4%-3.7%
Operating Margin

15.0%

Previous: 23.8%-37.0%
Adjusted EBITDA

$282M

Previous: $228M+23.5%
Capital Expenditures

$55M

Previous: $23.4M+135.0%
Free Cash Flow

$130M

Previous: $171M-23.9%
Net Income

$54M

Previous: $150M-64.0%
Operating Income

$163M

Previous: $182M-10.3%
Gross Profit

$485M

Previous: $355M+36.8%
Cash & Equivalents

$909M

Previous: $966M-5.9%
Total Assets

$11.5B

Previous: $4.54B+153.2%
Stock-Based Comp

$14M

Previous: $8.9M+57.3%

Revenue & EPS history

MKS · Revenue · Quarterly

$1.09B

Q4 2022+42%vs Q4 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

MKS · $1.09B total across 3 segments · Q4 2022

  • Semiconductor
    $503M+1.6%
  • Specialty Industrial
    $316M
  • Electronics & Packaging
    $266M

Forward guidance

The Company anticipates the ransomware incident identified on February 3, 2023 to have a material impact on the Company's first quarter results. The full scope of the costs and related impacts of the incident has not yet been determined. As a result, the Company will not provide its usual first quarter guidance at this time. Prior to the ransomware event, the Company expected revenue in the first quarter of approximately $1 billion. The Company currently estimates the impact from the incident on first quarter revenue to be at least $200 million. The Company expects to resume its normal guidance practice for the second quarter.

Headwinds

  • The ransomware incident identified on February 3, 2023 is anticipated to have a material impact on the Company's first quarter results.
  • The full scope of the costs and related impacts of the incident has not yet been determined.
  • The Company will not provide its usual first quarter guidance at this time.
  • The Company currently estimates the impact from the incident on first quarter revenue to be at least $200 million.

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 Q4 2022

Historical avgQ4 2022

+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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