MKS Instruments Analysts Await Elaboration On Ransomware Impact Post Q4 Results

  • Benchmark analyst Mark Miller had a Hold rating on MKS Instruments, Inc MKSI.
  • For its 4Q22, MKS reported adjusted EPS of $2.00 on record quarterly sales of $1.09 billion
  • These results include a full quarter of the Atotech acquisition. 
  • The consensus estimate for MKS’s 4Q22 called for adjusted EPS of $1.34 per diluted share on sales of $994 million. 
  • MKS reported a quarterly cash flow from operations of $184 million and a free cash flow of $130 million, enabling a $100 million voluntary term loan prepayment in December. 
  • The company anticipates the previously announced ransomware incident identified on February 3 to have a material impact on the company’s Q1 results. 
  • MKS is yet to determine the full scope of the costs and related impacts of the incident. 
  • As a result, the company will not provide its usual Q1 guidance at this time. 
  • The company currently estimates the impact of the incident on Q1 revenue to be at least $200 million. 
  • MKS expects to resume its normal guidance practice for Q2.
  • Commentary indicated results were driven by “solid operational execution,” though KeyBanc analyst Steve Barger expected comments surrounding segment performance on Wednesday’s call given the communicated softness in Semiconductor and Electronics & Packaging (previously Advanced Electronics). 
  • The analyst expects to hear more detail about the ransomware event, commentary surrounding 2023, end markets, ATC contribution, and expected margin progression on Wednesday’s call.
  • Price Action: MKSI shares traded higher by 7.20% at $98.82 on the last check Tuesday.
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