MKS Instruments Inc. (MKSI) saw sales increase sharply from the third to the fourth quarter in 2009 as demand rose from its primary customers in the semiconductor industry.
Company Description
MKS Instruments manufactures instruments, subsystems and process control products that measure and analyze parameters of advanced manufacturing processes, primarily for the semiconductor industry and other thin film applications including flat panel displays, solar cells, and data storage media.
It specializes in pressure management and control, gas composition analysis and vacuum technology.
MKS Instruments technology is also used in medical equipment, pharmaceutical manufacturing, energy generation and environmental monitoring.
Fourth Quarter Sales Jump 19%
On Feb 3, MKS Instruments reported fourth quarter results which blew by the Zacks Consensus by 244.44% as sales jumped. It was the third time in the last 4 quarters the company has surprised on estimates.
Earnings per share were 31 cents compared to the Zacks Consensus of just 9 cents.
The company saw sales trending higher in the last two quarters of the year. Sales were up 41% compared to the third quarter and 19% year over year.
“In the fourth quarter we saw further acceleration in our core semiconductor business and we are seeing signs of improvement in the general market as well,” said Leo Berlinghieri, Chief Executive Officer and President.
Outlook for 2010
MKS Instruments expects improvement in the global economy will result in higher sales in the company’s non-semiconductor markets in 2010.
The company expects first quarter earnings per share in the range of 36 to 49 cents. Sales should be between $170 million and $190 million.
Zacks Consensus Estimates Rise Sharply
After the big blowout fourth quarter, analysts scrambled to raise estimates for 2010.
First quarter estimates jumped 120% to 44 cents from 20 cents in the last 30 days. This is in the middle of the company’s guidance range.
4 estimates have moved higher for the full year in the last month which has pushed the 2010 Zacks Consensus up to $1.80 from $1.01 per share.
Value Fundamentals
MKS Instruments is a Zacks #1 Rank (strong buy) stock. It has a price-to-book ratio of only 1.38. The company also has attractive valuations, trading at just 10.6x forward earnings.
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service.