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MKS Instruments Hits 52-Week High on Solid Prospects

Shares of MKS Instruments, Inc.MKSI reached a new 52-week high of $41.00 on May 31, before closing the trading session slightly lower at $40.98. This apex improved upon the last 52-week high of $40.95 on May 27.

This rise reflected a year-to-date return of 14.9%. The trading volume for the session was 0.45 million shares. Earnings estimate revisions for 2016 and 2017, along with an expected earnings growth rate of 15.7% for the next five years indicate the stock's potential to further drive up its price.

Growth Drivers

MKS Instruments, Inc's financial results have been impressive in the last four trailing quarters, with an average positive earnings surprise of 12.92%. Last quarter, the company's earnings of 38 cents per share surpassed the Zacks Consensus Estimate of 33 cents by 15.15%. Also, revenues of $183.7 million exceeded the Zacks Consensus Estimate by 3.2%. The quarterly results were supported by increased demand from semiconductor customers, strong 3D NAND business, greater innovation and product portfolio solidification. MKS Instruments' share price has grown roughly 10.6% since the first-quarter earnings release on Apr 25.

For 2016, MKS Instruments expects favorable business environment in the end markets to drive its growth, going forward. The company anticipates its sales to range within $185-$205 million and adjusted earnings to be 41-54 cents per share in second-quarter 2016. These projections compare favorably with the company's first-quarter 2016 results.

Post the first-quarter 2016 results release, MKS Instruments announced strategic investment of $9.3 million in Reno Sub Systems. Also, the company completed the acquisition of all issued and outstanding shares of Newport Corporation. We believe these investments along with the company's commitment of rewarding its shareholders with healthy dividend payments will work in its favor in the quarters ahead.

Estimate Revisions Show Potency

Over the last 60 days, the Zacks Consensus Estimate for MKS Instruments, Inc. grew 6% to $2.29 for 2016 and 23.5% to $2.94 for 2017. These estimates represent year-over-year growth of 3% for 2016 and 28.7% for 2017%.

With a market capitalization of $2.2 billion, MKS Instruments, Inc. currently carries a Zacks Rank #2 (Buy). Some similarly-ranked stocks in the industry include Brooks Automation, Inc. BRKS , Cohu, Inc. COHU and Entegris, Inc. ENTG .

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BROOKS AUTOMATN (BRKS): Free Stock Analysis Report

COHU INC (COHU): Free Stock Analysis Report

MKS INSTRUMENTS (MKSI): Free Stock Analysis Report

ENTEGRIS INC (ENTG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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