Deutsche Bank shared its views on MKS Instruments, Inc. (NASDAQ:MKSI) ahead of the upcoming Q4 results. The analysts expect Q4 results to be in line with or slightly above Street estimates given an eased supply environment. However, memory CAPEX dynamics appear to have worsened with key memory suppliers cutting CAPEX and utilization, and equipment OEMs (original equipment manufacturers) already seeing a sharp correction in shipments.

Considering the company sits upstream to these OEMs, and that several sub-systems suppliers are also seeing meaningful declines, the analysts expect Q1 guidance to be cautious and therefore lowered their Q1 estimates to be more in line with the Street.

Looking beyond Q1, the analysts also lowered their 2023/2024 estimates to be consistent with the topline cuts indicated by equipment OEMs. 2023/2024 EPS estimates moved from $4.25/$5.75 to $3.85/$5.50.