Benzinga | Apr 23, 2021 10:11AM EDT

Earnings Outlook For MKS Instruments

MKS Instruments (NASDAQ:MKSI) unveils its next round of earnings this Monday, April 26. Get prepared with Benzinga's ultimate preview for MKS Instruments's Q1 earnings.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see MKS Instruments reporting earnings of $2.2 per share on revenue of $652.22 million. MKS Instruments EPS in the same period a year ago totaled $1.54. Revenue was $535.70 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Monday, EPS would be up 42.86%. Revenue would be up 21.75% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 2.02 1.77 1.19 1.24EPS Actual 2.34 1.93 1.62 1.54Revenue Estimate 602.98 M 561.29 M 491.88 M 508.65 MRevenue Actual 660.20 M 589.80 M 544.30 M 535.70 M

Stock Performance

Shares of MKS Instruments were trading at $179.85 as of April 22. Over the last 52-week period, shares are up 88.92%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. MKS Instruments is scheduled to hold the call at 08:30:00 ET and can be accessed here.