Tech firm MKS's Q2 revenue beats expectations
Overview
MKS Q2 revenue of $973 mln beats analyst expectations, per LSEG data
Adjusted EBITDA of $240 mln exceeds high end of co's guidance
Co attributes growth to demand in Semiconductor and Electronics & Packaging markets
Outlook
Company forecasts Q3 revenue of $960 mln, plus or minus $40 mln
MKS sees Q3 GAAP net income of $67 mln, plus or minus $21 mln
Company expects Q3 gross margin of 46.5%, plus or minus 1.0%
MKS anticipates Q3 adjusted EBITDA of $232 mln, plus or minus $24 mln
Company to monitor U.S. import tariffs and retaliatory actions
Result Drivers
SEMICONDUCTOR DEMAND - Strong year-over-year growth in Semiconductor market drove revenue above guidance, per CEO John T.C. Lee
ELECTRONICS & PACKAGING - Increased demand for products addressing advanced packaging and AI applications boosted results
TRADE POLICY AGILITY - Co exercised agility to mitigate trade policy instability, contributing to strong cash flows for debt prepayment
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $973 mln | $930.70 mln (12 Analysts) |
Q2 Net Income | $62 mln | ||
Q2 Pretax Profit | $72 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 2 "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 Inc is $119.11, about 22.7% above its August 5 closing price of $92.02
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release:
