Investors interested in stocks from the Electronics - Manufacturing Machinery sector have probably already heard of Ultra Clean Holdings (UCTT) and Entegris (ENTG) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our St ...

Financial Data and Key Metrics Changes - The company has been outperforming the semiconductor industry by about four to five percentage points over the last ten years in terms of revenue growth [7][28] - Average ASPs in the semiconductor industry are currently 50% higher than they were in 2019, while the company's pricing has remained flat over the last several years [15][16] Business Line Data and Key Metrics Changes - The company operates two major product platforms: advanced purity solutions and material solutions, both expected to grow at rates of three to six points and four to six points respectively [41][42] - Advanced purity solutions have an operating margin potential in the high twenties, while material solutions are currently in the mid-twenties, with potential to reach the mid-twenties in the future [42][43] Market Data and Key Metrics Changes - China accounts for about 20% of the company's revenue, with 80% of that coming from domestic Chinese customers [48] - The company has seen significant growth from TSMC, with its share increasing from 12% to 16% of total revenue last year [68] Company Strategy and Development Direction - The company aims to be a consolidator in the fragmented semiconductor materials space, with M&A being a significant part of its growth strategy [11][12] - The focus is on increasing content per wafer through new materials and applications, which is expected to drive future growth [18][28] Management's Comments on Operating Environment and Future Outlook - The management acknowledges the cyclical nature of the semiconductor industry but believes the company's business model is more resilient due to its consumable product nature [10][29] - The management is optimistic about future growth opportunities driven by the complexity of semiconductor devices and the desire for miniaturization [7][28] Other Important Information - The company has a global manufacturing footprint, with 45% of its manufacturing in the U.S. and 55% in Asia, ensuring redundancy and local support for customers [45][58] - The company is actively working to mitigate the impact of tariffs by qualifying alternative Asian manufacturing sites for its Chinese customers [56][57] Q&A Session Summary Question: How is the content per wafer growing? - The growth in content per wafer is driven by new materials that are better performing and more expensive, as well as increased volumes and layers [16][18] Question: What is the forward growth formula? - The company believes the semiconductor industry's secular growth potential is twice the rate of GDP, plus an additional three to six points of outperformance [25][28] Question: What impact are tariffs having on the company? - The company has been able to offset tariff impacts through price increases and is working to qualify alternative manufacturing sites in Asia for its Chinese customers [50][56] Question: What is the state of the industry? - The management notes that the industry is difficult to predict, but they are focused on customer engagement and developing specialized solutions to be ready for when the industry turns [62][65] Question: Why is the CEO stepping down now? - The CEO believes in refreshing leadership and has confidence in his successor, who has extensive experience in the semiconductor industry and is a capable capital allocator [95][96]

Entegris (ENTG) reported $773.2 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 0.3%. EPS of $0.67 for the same period compares to $0.68 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $788.96 million, representing a surprise of -2.00%. The company delivered an EPS surprise of -2.90%, with the consensus EPS estimate being $0.69.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stree ...

Financial Data and Key Metrics Changes - The company's first quarter revenue grew by 5% year on year, excluding divestitures, slightly below guidance [4] - Gross margin was at 46.1%, at the midpoint of guidance and up sequentially due to strong cost management [12][13] - Non-GAAP EPS was $0.67 per share, at the midpoint of guidance [14] Business Line Data and Key Metrics Changes - Materials Solutions sales increased by 8% year on year, driven by strong growth in CMP slurries and pads, which were up almost 20% [4][14] - Advanced Purity Solutions sales rose by 3% year on year, but saw an 11% sequential decline due to lower demand for CapEx products [5][15] Market Data and Key Metrics Changes - The company expects a temporary impact on top-line revenue related to sales to China due to new tariffs, estimating a potential loss of up to $50 million for Q2 [10][31] - Excluding China, the business remains strong, with expectations for sequential growth in consumable product lines [29][30] Company Strategy and Development Direction - The company is focused on building a comprehensive global manufacturing footprint with regionally integrated supply chains to mitigate risks [7] - Investments in new manufacturing sites, such as the Colorado facility, are aimed at enhancing production capabilities and supporting customer technology roadmaps [6][18] Management's Comments on Operating Environment and Future Outlook - The management highlighted the uncertainty in the semiconductor industry due to new tariff regimes, affecting revenue guidance for Q2 [10][20] - Despite the challenges, the company remains committed to improving free cash flow and reducing debt levels [11][19] Other Important Information - The company achieved its first CHIPS Act milestone and expects to receive $9 million in the second quarter [18] - Capital expenditures for 2025 are expected to be approximately $300 million, down from previous expectations [17] Q&A Session Summary Question: Impact of tariffs on guidance and customer behavior - Management clarified that the Q2 guidance reflects strong business performance excluding China, with a solid book-to-bill ratio approaching 1.2 [28] - The potential $50 million loss in Q2 is due to new tariffs, but alternative manufacturing sites are being qualified to mitigate this impact [31][32] Question: Changes in customer discussions regarding Moly adoption - Despite macro uncertainties, major node transitions are still on track, with expectations for Moly adoption in the second half of the year [35][36] Question: Recovery of lost sales due to tariffs - Management believes the impact is temporary and that the China business remains strong, with active discussions ongoing to transition demand to alternative sites [41][44] Question: Q1 results and customer behavior - The Q1 performance was slightly below guidance due to softer demand for CapEx products, particularly in new fab construction [46][48] Question: Gross margin impact from tariffs - Management indicated that while tariffs may have a modest impact on Q2 gross margins, they expect overall gross margins to improve in 2025 compared to 2024 [56] Question: Advanced Packaging growth outlook - Advanced packaging is a small but rapidly growing market, with expectations for over 25% growth in 2025 driven by high viscosity dispense solutions and HBM slurries [97][98]

Financial Performance - Entegris reported quarterly earnings of $0.67 per share, missing the Zacks Consensus Estimate of $0.69 per share, and showing a slight decrease from $0.68 per share a year ago, resulting in an earnings surprise of -2.90% [1] - The company posted revenues of $773.2 million for the quarter ended March 2025, which was 2% below the Zacks Consensus Estimate and slightly above the year-ago revenues of $771.03 million [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.70 on revenues of $814.77 million, and for the current fiscal year, it is $3.25 on revenues of $3.41 billion [7] - The trend of estimate revisions for Entegris has been unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Market Performance - Entegris shares have declined approximately 16.2% since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] - The Electronics - Manufacturing Machinery industry, to which Entegris belongs, is currently ranked in the bottom 6% of over 250 Zacks industries, suggesting a challenging environment for the company [8]

Entegris Earnings Summary First Quarter 2025 May 7, 2025 ENTEGRIS PROPRIETARY AND CONFIDENTIAL – INTERNAL Safe Harbor ENTEGRIS FIRST QUARTER 2025 EARNINGS SUMMARY This presentation contains "forward-looking statements." The words "believe," "expect," "anticipate," "intend," "estimate," "forecast," "project," "should," "may," "will," "would" or the negative thereof and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are based on current managemen ...

BILLERICA, Mass., May 7, 2025 - Entegris, Inc. (NASDAQ: ENTG), today reported its financial results for the Company's first quarter ended March 29, 2025. Bertrand Loy, Entegris' President and Chief Executive Officer, said: "Our first quarter revenue grew 5 percent year-on- year, excluding divestitures, with strong demand for our CMP consumables and micro contamination control solutions. Gross margin, EBITDA margin and non-GAAP EPS were within guidance." Mr. Loy added: "While new tariff regimes have increase ...

Core Points - Entourage Health Corp. has completed a plan of arrangement where 1001095275 Ontario Inc., a related party of LiUNA Pension Fund, acquired all issued and outstanding common shares of the Company for cash consideration of C$0.005 per share, effective March 31, 2025 [1][2] - The arrangement also included the same cash consideration for holders of certain vested convertible securities and involved debt settlement agreements for C$1,013,050 in unsecured debentures, settled for C$250,000 [2] - The arrangement was approved by shareholders on March 21, 2025, and by the Superior Court of Justice on March 26, 2025 [3] Company Overview - Entourage Health Corp. is a publicly traded parent company of Entourage Brands Corp., which produces and distributes cannabis products for medical and adult-use markets [8] - The Company operates a fully licensed processing facility in Aylmer, Ontario, and has a multi-channel distribution strategy, including partnerships with LiUNA and various provincial distribution agencies [8] - Entourage's product portfolio includes brands such as Starseed Medicinal, Color Cannabis, and Saturday Cannabis, and it is the exclusive Canadian producer of the wellness brand Mary's Medicinals [8] Post-Arrangement Plans - Following the completion of the arrangement, Entourage intends to delist its common shares from the TSX Venture Exchange, Frankfurt Stock Exchange, and OTC Markets, and will apply to cease being a reporting issuer [4] - Shareholders are required to surrender their share certificates and complete a Letter of Transmittal to receive their cash consideration [5][6]

Core Points - Entourage Health Corp. has amended its credit facilities, increasing the Subordinated Facility by approximately $3,000,000 and extending the maturity date to December 31, 2025 [2][3] - The lender for both facilities is 2437653 Ontario Inc., a related party of the LiUNA Pension Fund of Central and Eastern Canada [1][4] - The company has received a forbearance letter from LPF, waiving breaches under the facilities until specific conditions are met [3] Company Overview - Entourage Health Corp. is a Canadian producer and distributor of cannabis products, operating a fully licensed 26,000 sq. ft. processing facility in Aylmer, Ontario [6] - The company has a multi-channel distribution strategy, including partnerships with the largest construction union in Canada and exclusive agreements with wellness brands [6]

Core Points - Entourage Health Corp. has received shareholder approval for a plan of arrangement involving the acquisition of all common shares by 1001095275 Ontario Inc. for cash consideration of $0.005 per share [1][2] - The special resolution for the arrangement was approved by 95.647% of votes cast by shareholders present or represented by proxy, and 90.477% excluding the Purchaser and Guarantor [3] - The arrangement is expected to be effective around March 31, 2025, pending a final order from the Ontario Superior Court of Justice and other customary closing conditions [4] Company Overview - Entourage Health Corp. is a publicly traded parent company of Entourage Brands Corp., which produces and distributes cannabis products for medical and adult-use markets [7] - The company operates a fully licensed processing facility in Aylmer, Ontario, covering 26,000 square feet [7] - Entourage has a multi-channel distribution strategy, including partnerships with LiUNA, the largest construction union in Canada, and offers a range of cannabis brands [7] Additional Information - Registered shareholders must submit a Letter of Transmittal and share certificates to TSX Trust Company to receive cash consideration after the arrangement closes [5] - More details about the arrangement can be found in the management information circular dated February 10, 2025, available on SEDAR+ [6] - The LiUNA Pension Fund of Central and Eastern Canada, involved in the arrangement, is one of the fastest-growing multi-employer pension funds in Canada with over $12 billion in assets [9]