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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