MKS Instruments, Inc.
) reported adjusted earnings per share of 14 cents, beating the
Zacks Consensus Estimate of 12 cents. However, the year-over-year
financial results for the second quarter of 2013 were weak with a
drop in both earnings as well as revenues. Earnings dropped 60.0%
year over year.
Net sales dropped 11.5% year over year to $156.9 million.
Reported revenues, however, beat the Zacks Consensus Estimate of
$156.0 million, marginally.
Revenues from the sale of Products came in at $132.5 million
and accounted for 84.5% of total revenue, while sales from
Services came in at $24.4 million, accounting for the remaining
MKS Instruments' cost of revenues dropped 5.9% from the
year-earlier quarter to $95.0 million in the second quarter. This
resulted in a gross margin of 39.5%, declining 360 basis points
(bps) year over year. SG&A (selling, general and
administrative) expense was $34.8 million, up 7.0% year over
year. The company reported operating margins of 6.6%, plunging
940 bps year over year.
Cash and cash equivalents at the end of second-quarter 2013
were $235.7 million, compared with $266.7 million at the end of
the preceding quarter.
During the quarter, MKS Instruments paid a quarterly cash
dividend of 16 cents per share. The company also repurchased 46K
shares worth $1.2 million in the quarter.
Management believes the semiconductor markets will stabilize
over the next few quarters. Accordingly, revenues are expected in
the range of $155.0 million to $170.0 million in third-quarter
2013. The company also expects to generate earnings per share in
the range of 14 cents to 26 cents.
The semiconductor industry is in the process of gaining
traction in the coming quarters, after facing a downturn over the
past few quarters.
Other Stocks to Consider
) released its second-quarter results on Jul 23, 2013. The
company reported earnings per share of 15 cents, beating the
Zacks Consensus Estimate of 11 cents by 36.4%.
) is expected to release its second-quarter results after the
market closes on Jul 31, 2013. The Zacks Consensus Estimate for
the quarter is a loss of 13 cents.
Brooks Automation, Inc.
) is expected to release its fiscal third-quarter 2013 results
after the market closes on Aug 8, 2013. The Zacks Consensus
Estimate for the quarter is 3 cents.
MKS Instruments currently carries a Zacks Rank #3 (Hold).
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