Wall Street expects a year-over-year increase in earnings on lower revenues when Entegris (ENTG) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on November 4, 2024, might help the stock move higher if these key numbers are better than ex ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Entegris (ENTG) , which belongs to the Zacks Electronics - Manufacturing Machinery industry. This maker of equipment used in chip manufacturing has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 6.45%. For the most recent quarter, Entegris was expected t ...

Financial Data and Key Metrics Changes - Sales for Q2 2024 were $813 million, exceeding guidance and reflecting a 10% sequential increase and a 6% year-over-year increase, excluding divestitures [4][10] - Gross margin increased sequentially and was up over 300 basis points year-over-year, reaching 46.2% [4][10] - Adjusted EBITDA for Q2 was $226 million, or 27.8% of revenue, within guidance range [10] - Non-GAAP EPS was $0.71 per share, also within guidance [10] Business Line Data and Key Metrics Changes - The Materials Solutions (MS) division reported sales of $342 million, up 8% sequentially, driven by CMP slurries and pads [11] - The Advanced Materials Handling (AMH) division saw sales of $188 million, up 16% sequentially, primarily from CapEx solutions [12] - The Microcontamination Control (MC) division achieved record sales of $294 million, up 10% sequentially, with strong performance across product lines [12] Market Data and Key Metrics Changes - The semiconductor market is expected to see a gradual recovery, with wafer starts projected to increase by about 3% [17] - CapEx is anticipated to grow in the low to mid-single digits, contrasting with a slower recovery in wafer starts [17] - The SiC business is expected to grow 30% this year, down from an original expectation of 50% [19] Company Strategy and Development Direction - The company is investing significantly in R&D, with a planned 15% increase in spending for 2024 to capture growth opportunities [7] - A new manufacturing facility in Colorado is being supported by a preliminary award of up to $75 million under the CHIPS & Science Act [5] - The company expects to generate approximately $40 million in revenue from its new facility in Kaohsiung, Taiwan, for the full year 2024 [6] Management's Comments on Operating Environment and Future Outlook - The management noted that 2024 is a transition year for the semiconductor market, with expectations for gradual recovery in the second half of the year [8] - The company anticipates sales of approximately $3.3 billion for 2024, reflecting a modest reduction due to slower-than-expected market recovery and foreign exchange impacts [9] - Management expressed confidence in the improving fundamentals of the semiconductor market and expects growth to accelerate into 2025 [15] Other Important Information - Free cash flow for Q2 was $52 million, with total CapEx expected to be approximately $350 million in 2024 [12] - The company has paid down approximately $1.9 billion of total debt since the close of the CMC acquisition, with a gross debt of approximately $4.2 billion at the end of Q2 [13][49] Q&A Session Summary Question: Market outlook and slower recovery - Management indicated that wafer starts are expected to be up about 3%, with CapEx slightly stronger in the low to mid-single digits, leading to a blended growth of about 3% for the industry [17][19] Question: Outperformance versus broader market - The company expects to outperform the market by 4 percentage points in 2024, driven by node transitions, with expectations for significant growth in 2025 [20][21] Question: Impact of export restrictions to China - Management quantified the impact of existing restrictions on trade with China at about $20 million of lost revenue per quarter, but noted strong performance in their China business [23][24] Question: Confidence in fourth quarter ramp - Management expressed confidence in a stronger fourth quarter due to expected volume and operating leverage, despite challenges in certain segments [26][27] Question: CapEx commentary - Management noted that WFE is expected to grow in the mid- to high single digits, while fab construction remains relatively flat [31] Question: FOUPs business outlook - The FOUP business saw a nearly 30% sequential increase in Q2, but is expected to contract in Q3 before expanding in Q4 and continuing to grow in 2025 [32][33] Question: Revenue potential of new facilities - The Kaohsiung facility has a full capacity potential of around $500 million, with initial revenue expected to be about $40 million for 2024 [38] Question: Balance sheet and cash flow outlook - The company remains committed to reducing leverage and using free cash flow for debt repayment, with expectations for gross leverage to be slightly above 4x at the end of 2024 [49][50]

Entegris (ENTG) came out with quarterly earnings of $0.71 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.66 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 1.43%. A quarter ago, it was expected that this maker of equipment used in chip manufacturing would post earnings of $0.61 per share when it actually produced earnings of $0.68, delivering a surprise of 11.48%. Over the l ...

PRESS RELEASE | --- | --- | --- | --- | |--------------------------------------------------------|-------------------------------|------------------------------|-----------------------------| | GAAP Results \nNet sales | Jun 29, 2024 \n$812,652 | Jul 1, 2023 \n$901,000 | Mar 30, 2024 \n$771,025 | | Gross margin - as a % of net sales | 46.2 % | 42.6 % | 45.6 % | | Operating margin - as a % of net sales | 16.0 % | 29.7 % | 15.3 % | | Net income | $67,696 | $197,646 | $45,266 | | Diluted earnings per common sh ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the tr ...

Charles Shi And what's the outlook for the full year between infrastructure, CapEx and equipment? What do you see? So right now, we expect relatively steady infrastructure-related demand. And we expect to see some uptick in WFE-related demand in the back half of the year. Operator And our next question comes from Christopher Parkinson with Wolfe Research. Harris Fein This is Harris Fein on for Chris. So I mean we've seen a lot of grants for new fabs in the U.S. over the last few weeks. I guess, at what poin ...

PRESS RELEASE Bill Seymour VP of Investor Relations T + 1 952 556 1844 bill.seymour@entegris.com Exhibit 99.1 ENTEGRIS REPORTS RESULTS FOR FIRST QUARTER OF 2024 BILLERICA, Mass., May 1, 2024 - Entegris, Inc. (NASDAQ: ENTG), today reported its financial results for the Company's first quarter ended March 30, 2024. Bertrand Loy, Entegris' president and chief executive officer, said: "We are pleased with our positive start to the year. Sales of $771 million were at the high end of our guidance. Adjusted EBITDA ...

 Key PointsFive key trends should be at the top of investors' minds as they enter the new quarter.Working through the fundamental trends, all the way to sector-specific interests in the stock market, there is opportunity at each turn.Wall Street price targets and EPS projections support the upcoming capital rotation.5 stocks we like better than Taiwan Semiconductor ManufacturingThe global financial markets are like a machine, and each asset class acts as a cog that twists and turns each cycle. Today, there ...

PM Images Entegris, Inc. (NASDAQ:ENTG) appears to be receiving a lot of attention because of recent earnings growth expectations for 2024 and price momentum increases. I believe that the total amount of recurrent sales is a good reason to follow the stock. In addition, careful research of ENTG's corporate documents reveals that the company is going through many changes that include severance costs and sale of divisions, which may facilitate deleveraging the balance sheet. In my view, we could see significan ...