Entegris (ENTG) came out with quarterly earnings of $0.77 per share, missing the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $0.68 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.53%. A quarter ago, it was expected that this maker of equipment used in chip manufacturing would post earnings of $0.70 per share when it actually produced earnings of $0.71, delivering a surprise of 1.43%.Over the la ...

Financial Performance - Net sales for Q3 2024 were $808 million, a decrease of 9% from the prior year, but adjusted net sales increased by 7% when excluding divestitures[2] - GAAP net income for Q3 2024 was $77.6 million, significantly higher than $33.2 million in Q3 2023[4] - Basic earnings per common share increased to $1.26 from $0.95, representing a 32.6% growth year-over-year[19] - Total net sales for the three months ended September 28, 2024, were $807.694 million, down 9.1% from $888.239 million in the same period last year[25] - Net income for the three months ended September 28, 2024, was $77.582 million, significantly up from $33.212 million in the same period last year, marking a 133.3% increase[22] - The diluted earnings per share for the three months ended September 28, 2024, was $0.51, an increase from $0.22 in the same period of 2023[30] Margins and Profitability - Adjusted gross margin was 46.0% for Q3 2024, up from 41.4% in Q3 2023, while adjusted operating margin improved to 23.0% from 22.0%[1] - Adjusted EBITDA for Q3 2024 was 28.8% of net sales, an increase from 26.5% in Q3 2023[1] - Operating margin as a percentage of net sales improved to 16.9% for the three months ended September 28, 2024, up from 13.2% in the same period last year[29] - The company reported a net income margin of 9.6% for the three months ended September 28, 2024, compared to 3.7% in the same period last year[29] Future Outlook - The company expects Q4 2024 sales to be between $810 million and $840 million, representing an 8% year-on-year increase when excluding divestitures[5] - The fourth quarter outlook for net sales is projected to be between $810 million and $840 million[33] - The adjusted operating margin for the fourth quarter is expected to be between 22.5% and 23.9% of net sales[33] - Adjusted EBITDA for the fourth quarter is forecasted to be between $231 million and $248 million, representing an adjusted EBITDA margin of 28.5% to 29.5%[33] - GAAP net income for the fourth quarter is estimated to be between $75 million and $86 million[34] - Non-GAAP net income for the fourth quarter is projected to be between $114 million and $125 million[34] - Diluted non-GAAP earnings per share for the fourth quarter are expected to range from $0.75 to $0.82[34] Operational Changes - The company has realigned its operating structure, combining the Microcontamination Control and Advanced Materials Handling segments into one reportable segment[6] - The company plans to continue funding critical investments to enhance its technology capabilities and market position[3] - The company plans to continue focusing on market expansion and new product development to drive future growth[23] Cash and Assets - Cash and cash equivalents at the end of the period were $432.072 million, down from $594.020 million at the end of the previous year[22] - Total assets decreased to $8.472 billion from $8.813 billion, reflecting a 3.9% decline[20] - Total liabilities decreased to $4.880 billion from $5.000 billion, a reduction of 2.4%[21] Segment Performance - Segment profit for Materials Solutions increased to $71.706 million from $56.955 million year-over-year, a growth of 25.9%[24] - Total adjusted segment profit for the three months ended September 28, 2024, was $199.021 million, compared to $206.843 million for the same period in 2023, reflecting a decrease of 3.8%[29] Adjustments and Impairments - The company experienced a goodwill impairment charge of $15.913 million in the three months ended September 30, 2023[30] - The company reported divestitures impacting net sales, with a reduction of $132,250,000 in the three months ended September 30, 2023[31] - Adjusted net sales (excluding divestitures) for the nine months ended September 28, 2024, were $2,357,464,000, reflecting a 2.5% increase from $2,300,122,000 for the same period in the previous year[31]

Group 1 - Entegris (ENTG) is expected to report quarterly earnings of $0.79 per share, reflecting a year-over-year increase of 16.2% [1] - Revenues are anticipated to be $830.73 million, which represents a decline of 6.5% from the same quarter last year [1] - The consensus EPS estimate has been adjusted downward by 1.2% over the past 30 days, indicating a reassessment by analysts [1][2] Group 2 - Analysts predict 'Net Sales- Microcontamination Control' will reach $303.20 million, showing a year-over-year increase of 5.9% [4] - The estimate for 'Net Sales- Advanced Materials Handling' is $188.15 million, indicating a year-over-year change of 4.4% [4] - 'Segment Profit- Microcontamination Control' is expected to be $101.80 million, slightly up from $101.13 million in the previous year [4] Group 3 - 'Segment Profit- Advanced Materials Handling' is projected to reach $34.70 million, compared to $31.64 million from the year-ago quarter [5] - Entegris shares have shown a return of -0.9% over the past month, contrasting with the Zacks S&P 500 composite's +1.8% change [5] - Entegris holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market [5]

Industry Overview - The Zacks Electronics - Manufacturing Machinery industry is experiencing growth due to increased capital spending on high-performance computing, AI, mobility, augmented reality, virtual reality, and advanced packaging by semiconductor manufacturers [1] - Key players such as Entegris, MKS Instruments, and Axcelis Technologies are benefiting from trends in cloud computing, healthcare, and automotive sectors [1] - The industry is facing challenges from global macroeconomic conditions and softness in the 3D NAND end-market [1] Industry Description - The industry comprises companies providing solutions for wafer processing, device packaging, and testing in semiconductor manufacturing [2] - Solutions include thin-film processing systems, photonics, process-control tools, advanced packaging lithography, and contamination control products [2] - The significance of contamination-free transportation and storage of materials has increased recently [2] Trends Shaping the Industry - Miniaturization in semiconductor manufacturing is driving demand for advanced packaging and new device architectures like FinFET transistors and 3D-NAND [3] - The complexity of semiconductor manufacturing processes is increasing due to the demand for faster, more powerful, and energy-efficient semiconductors, driven by cloud computing, IoT, and AI [4] - Strong demand for NAND and DRAM, particularly in data centers and cloud segments, is a positive indicator for the industry [5] Industry Performance - The Zacks Electronics - Manufacturing Machinery industry ranks 69, placing it in the top 27% of over 250 Zacks industries, indicating bullish near-term prospects [6][7] - The industry's earnings estimates for 2024 have increased by 2.4% since September 30, 2024, reflecting a positive earnings outlook [8] Market Performance - Over the past year, the industry has underperformed compared to the broader Zacks Computer and Technology sector and the S&P 500, returning 15.9% compared to 39.4% and 48.3% respectively [10] - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 12.32X, below the S&P 500's 19.38X and the sector's 19.08X [11] Company Highlights - Entegris expects sales of approximately $3.3 billion for the current year, indicating a 7% growth over 2023, despite a slight decline in earnings estimates [13] - MKS Instruments is benefiting from strong adoption of its photonics and optical solutions, with a positive earnings estimate revision for 2024 [15][16] - Axcelis Technologies is experiencing robust demand for ion implantation systems, particularly in the silicon carbide market, although its earnings estimate has slightly declined [19]

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 ...

Company Performance - Entegris reported quarterly earnings of $0.71 per share, exceeding the Zacks Consensus Estimate of $0.70 per share, and up from $0.66 per share a year ago, representing an earnings surprise of 1.43% [1] - The company posted revenues of $812.65 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 1.47%, but down from $901 million in the same quarter last year [2] - Over the last four quarters, Entegris has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - Entegris shares have increased approximately 2.2% since the beginning of the year, while the S&P 500 has gained 14% [3] - The company's current consensus EPS estimate for the upcoming quarter is $0.84 on revenues of $856.25 million, and for the current fiscal year, it is $3.25 on revenues of $3.34 billion [7] - The estimate revisions trend for Entegris is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Electronics - Manufacturing Machinery industry, to which Entegris belongs, is currently ranked in the top 6% of over 250 Zacks industries, suggesting strong performance potential [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

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 ...

[Executive Summary & Business Outlook](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Outlook) Entegris reported strong Q1 2024 results, exceeding guidance and reducing debt, with a positive outlook for market recovery and outperformance [Q1 2024 Performance Highlights](index=1&type=section&id=Q1%202024%20Performance%20Highlights) Entegris reported strong Q1 2024 financial results, exceeding guidance and completing strategic divestitures while reducing debt - CEO Bertrand Loy highlighted a positive start to the year with sales of **$771 million** at the high end of guidance, and adjusted EBITDA and non-GAAP EPS exceeding guidance[2](index=2&type=chunk) - The company completed all planned divestitures of non-core assets with the sale of the Pipeline and Industrial Materials (PIM) business[2](index=2&type=chunk) - Over **$400 million** of debt was paid down during the quarter using proceeds from the PIM sale and cash on hand[2](index=2&type=chunk) - Management believes the semiconductor market is healthier with normalizing inventories and expects a gradual market recovery throughout 2024, with Entegris continuing to outgrow the market[2](index=2&type=chunk) Q1 2024 Financial Results Summary (in thousands) | Metric | Q1 2024 (Mar 30, 2024) | Q1 2023 (Apr 1, 2023) | Q4 2023 (Dec 31, 2023) | | :--- | :--- | :--- | :--- | | **GAAP Results** | | | | | Net Sales | $771,025 | $922,396 | $812,291 | | Gross Margin % | 45.6% | 43.5% | 42.4% | | Net Income (Loss) | $45,266 | ($88,166) | $37,977 | | Diluted EPS | $0.30 | ($0.59) | $0.25 | | **Non-GAAP Results** | | | | | Adjusted Gross Margin % | 45.6% | 44.3% | 42.4% | | Adjusted EBITDA % | 29.0% | 27.3% | 26.0% | | Diluted Non-GAAP EPS | $0.68 | $0.65 | $0.65 | [Q2 2024 Outlook](index=2&type=section&id=Q2%202024%20Outlook) Entegris projects Q2 2024 sales between $790 million and $810 million, with non-GAAP EPS of $0.68 to $0.73, representing an 8.5% sequential sales increase - The midpoint of the Q2 sales guidance represents an **8.5%** sequential increase, excluding the impact of divestitures[5](index=5&type=chunk) Guidance for Q2 2024 (ending June 29, 2024) (in millions) | Metric | Expected Range | | :--- | :--- | | Sales | $790 - $810 | | GAAP Net Income | $64 - $71 | | GAAP Diluted EPS | $0.42 - $0.47 | | Non-GAAP Net Income | $103 - $110 | | Non-GAAP Diluted EPS | $0.68 - $0.73 | | Adjusted EBITDA | ~28% of sales | [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Performance) Entegris's Q1 2024 net sales were $771.0 million, with Materials Solutions as the largest segment, while Microcontamination Control led in segment profit Segment Net Sales (in thousands) | Segment | Q1 2024 (Mar 30, 2024) | Q1 2023 (Apr 1, 2023) | Q4 2023 (Dec 31, 2023) | | :--- | :--- | :--- | :--- | | Materials Solutions | $350,036 | $448,330 | $364,965 | | Microcontamination Control | $267,864 | $269,297 | $288,427 | | Advanced Materials Handling | $162,854 | $218,853 | $169,191 | Segment Profit (in thousands) | Segment | Q1 2024 (Mar 30, 2024) | Q1 2023 (Apr 1, 2023) | Q4 2023 (Dec 31, 2023) | | :--- | :--- | :--- | :--- | | Materials Solutions | $67,124 | ($29,522) | $53,204 | | Microcontamination Control | $86,555 | $95,997 | $97,558 | | Advanced Materials Handling | $24,606 | $48,165 | $20,463 | [Materials Solutions (MS)](index=2&type=section&id=Materials%20Solutions%20%28MS%29) The Materials Solutions segment provides materials-based solutions including CMP slurries, deposition materials, and process chemistries - The MS segment provides materials-based solutions including chemical mechanical planarization (CMP) slurries and pads, deposition materials, and process chemistries[6](index=6&type=chunk) [Microcontamination Control (MC)](index=2&type=section&id=Microcontamination%20Control%20%28MC%29) The Microcontamination Control segment offers advanced filtration solutions for purifying critical liquid chemistries and gases in semiconductor manufacturing - The MC segment offers advanced filtration solutions to purify critical liquid chemistries and gases used in semiconductor manufacturing[7](index=7&type=chunk) [Advanced Materials Handling (AMH)](index=2&type=section&id=Advanced%20Materials%20Handling%20%28AMH%29) The Advanced Materials Handling segment develops solutions for protecting, monitoring, transporting, and delivering critical materials like wafers and liquid chemistries - The AMH segment develops solutions to protect, monitor, transport, and deliver critical materials like wafers and liquid chemistries[8](index=8&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) Entegris reported Q1 2024 net sales of $771.0 million and net income of $45.3 million, with reduced assets and long-term debt [Statements of Operations](index=6&type=section&id=Statements%20of%20Operations) Entegris's Q1 2024 statements of operations show net sales of $771.0 million and a significant improvement in net income to $45.3 million from a prior-year loss - Operating income in Q1 2024 was significantly higher than Q1 2023, which was impacted by an **$88.9 million** goodwill impairment charge[19](index=19&type=chunk) Q1 2024 Statement of Operations Highlights (in thousands) | Line Item | Q1 2024 (Mar 30, 2024) | Q1 2023 (Apr 1, 2023) | | :--- | :--- | :--- | | Net Sales | $771,025 | $922,396 | | Gross Profit | $351,820 | $401,685 | | Operating Income | $117,592 | $13,466 | | Net Income (Loss) | $45,266 | ($88,166) | | Diluted EPS | $0.30 | ($0.59) | [Balance Sheets](index=7&type=section&id=Balance%20Sheets) Entegris's balance sheet reflects a decrease in total assets to $8.36 billion and a reduction in long-term debt to $4.17 billion as of March 30, 2024 - The decrease in total assets was driven by the reclassification and sale of assets held-for-sale, which dropped from **$278.8 million** to **$8.0 million**[21](index=21&type=chunk) Balance Sheet Highlights (in thousands) | Line Item | Mar 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $340,682 | $456,929 | | Total current assets | $1,575,447 | $1,977,327 | | Total assets | $8,364,723 | $8,812,591 | | Long-term debt | $4,172,942 | $4,577,141 | | Total shareholders' equity | $3,430,170 | $3,408,594 | [Statements of Cash Flows](index=8&type=section&id=Statements%20of%20Cash%20Flows) Entegris generated $147.2 million in operating cash flow, with investing activities driven by business sales proceeds and financing activities primarily for debt repayment - Investing activities were primarily driven by **$249.6 million** in net proceeds from the sale of businesses[23](index=23&type=chunk) - Financing activities included payments of long-term debt of **$643.3 million**, partially offset by proceeds from new long-term debt of **$224.5 million**[23](index=23&type=chunk) Q1 2024 Cash Flow Highlights (in thousands) | Activity | Q1 2024 (Mar 30, 2024) | Q1 2023 (Apr 1, 2023) | | :--- | :--- | :--- | | Net cash provided by operating activities | $147,186 | $151,871 | | Net cash provided by (used in) investing activities | $181,016 | ($357) | | Net cash used in financing activities | ($439,861) | ($6,482) | [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Entegris provides non-GAAP metrics, with Q1 2024 adjusted net sales of $737.1 million and non-GAAP EPS of $0.68, primarily excluding amortization and restructuring costs [Net Sales and Gross Profit Reconciliation](index=10&type=section&id=Net%20Sales%20and%20Gross%20Profit%20Reconciliation) This section reconciles GAAP net sales and gross profit to non-GAAP figures, primarily by adjusting for divestitures and restructuring costs Reconciliation of Net Sales (in thousands) | Line Item | Q1 2024 | Q1 2023 | Q4 2023 | | :--- | :--- | :--- | :--- | | Net sales (GAAP) | $771,025 | $922,396 | $812,291 | | Less: Divestitures | (33,907) | (144,038) | (46,843) | | Adjusted Net sales (Non-GAAP) | $737,118 | $778,358 | $765,448 | Reconciliation of Gross Profit (in thousands) | Line Item | Q1 2024 | Q1 2023 | Q4 2023 | | :--- | :--- | :--- | :--- | | Gross profit (GAAP) | $351,820 | $401,685 | $344,680 | | Restructuring costs | — | 7,377 | 28 | | Adjusted gross profit (Non-GAAP) | $351,820 | $409,062 | $344,708 | [Operating Income & EBITDA Reconciliation](index=12&type=section&id=Operating%20Income%20%26%20EBITDA%20Reconciliation) This section reconciles GAAP operating income to adjusted EBITDA, with key adjustments including amortization of intangible assets and impairment charges - Major adjustments to operating income in Q1 2024 included **$50.2 million** for amortization of intangible assets and **$13.0 million** for impairment of long-lived assets, offset by a **$4.8 million** gain on sale of businesses[28](index=28&type=chunk) Reconciliation to Adjusted EBITDA (in thousands) | Line Item | Q1 2024 | Q1 2023 | Q4 2023 | | :--- | :--- | :--- | :--- | | Net income (loss) | $45,266 | ($88,166) | $37,977 | | GAAP - Operating income | 117,592 | 13,466 | 101,017 | | Adjustments* | 60,496 | 191,306 | 67,251 | | Adjusted operating income | 178,088 | 204,772 | 168,268 | | Depreciation | 45,343 | 46,775 | 42,558 | | Adjusted EBITDA | $223,431 | $251,547 | $210,826 | [Net Income & EPS Reconciliation](index=13&type=section&id=Net%20Income%20%26%20EPS%20Reconciliation) This section reconciles GAAP net income and EPS to non-GAAP figures, primarily adjusting for amortization, asset impairment, and debt extinguishment - Key adjustments to arrive at non-GAAP net income for Q1 2024 included adding back **$50.2 million** for amortization, **$13.0 million** for asset impairment, and **$11.6 million** for loss on debt extinguishment, offset by a **$4.8 million** gain on business sales and a **$13.5 million** tax effect[30](index=30&type=chunk) Reconciliation to Non-GAAP Net Income & EPS (in thousands) | Line Item | Q1 2024 | Q1 2023 | Q4 2023 | | :--- | :--- | :--- | :--- | | GAAP net income (loss) | $45,266 | ($88,166) | $37,977 | | Non-GAAP net income | $103,772 | $97,782 | $97,943 | | Diluted GAAP EPS | $0.30 | ($0.59) | $0.25 | | Diluted Non-GAAP EPS | $0.68 | $0.65 | $0.65 | [Outlook Reconciliation](index=15&type=section&id=Outlook%20Reconciliation) This section provides the Q2 2024 outlook reconciliation, with primary adjustments for amortization of intangible assets and deal-related costs - The primary adjustments for the Q2 2024 outlook are expected to be **$48 million** for amortization of intangible assets and **$2 million** for deal, transaction, and integration costs, with an associated income tax effect of **($11) million**[33](index=33&type=chunk) Q2 2024 Outlook Reconciliation (in millions) | Metric | GAAP Outlook | Adjustments | Non-GAAP Outlook | | :--- | :--- | :--- | :--- | | Net Income | $64 - $71 | $39 | $103 - $110 | | Diluted EPS | $0.42 - $0.47 | $0.26 | $0.68 - $0.73 |