We issued an updated research report on
MKS Instruments Inc.
) on May 6, 2014. The company reported improved year-over-year
results for the first quarter of 2014. Adjusted earnings per share
increased an astounding 629% to 51 cents while revenues recorded a
46% hike to roughly $206.4 million, year over year. The enhanced
results came on the back of improvement in the semiconductor and
other advanced markets.
MKS Instruments has been attempting to grow inorganically over
the past quarters. Aligned with this motive, the company acquired
Granville-Phillips division from industry peer
Brooks Automation, Inc.
) in Mar 2014. The acquisition is expected to be accretive to MKS
Instruments' earnings from the second half of 2014.
Shareholders are also expected to be benefited in the long run
due to the company's efforts in enhancing returns. MKS Instruments
has been paying regular dividends to its shareholders. Recently, it
announced a quarterly dividend increase to 165 cents from 160 cents
Moreover, the company has a strong customer base whose
association over time has proved advantageous. With continued
improvement in the semiconductor market, soaring contribution from
these customers is also expected to
However, MKS Instruments' overseas operations expose it to
foreign currency fluctuation risks. Also, in the
semiconductor-allied industry, a substantial portion of the
revenues is generated through company-owned patents. Thus, possible
non-renewal of these patents might be a major blow for the
With a market capitalization of $1.5 billion, MKS Instruments
currently holds a Zacks Rank #3 (Hold). Some better-ranked stocks
worth considering in the industry are
Kulicke and Soffa Industries, Inc.
Siliconware Precision Industries Co. Ltd.
). While Kulicke and Soffa Industries sports a Zacks Rank #1
(Strong Buy), Siliconware Precision Industries holds a Zacks Rank
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BROOKS AUTOMATN (BRKS): Free Stock Analysis
KULICKE & SOFFA (KLIC): Free Stock Analysis
MKS INSTRUMENTS (MKSI): Free Stock Analysis
SILICONWARE-ADR (SPIL): Free Stock Analysis
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