Entegris (ENTG) Q1 Earnings Beat Estimates, Revenues Up Y/Y
Enetgris ENTG reported first-quarter 2023 non-GAAP earnings of 65 cents per share, which beat the Zacks Consensus Estimate by 25%. However, the bottom line declined 38.7% year over year. The reported figure was above management’s earnings guidance of 50-55 cents.
Revenues of $922.4 million beat the consensus mark by 3.65%. The top line increased 42% year over year. The reported figure was above management’s guidance of $880-$910 million.
The top line was affected primarily by losses incurred in foreign exchange transactions. Entegris’ top-line growth was hurt by approximately 3% in the first quarter.
Top-Line Details
Specialty Chemicals and Engineered Materials (SCEM) revenues increased 19.4% year over year to $198 million. Growth in SCEM revenues was driven by the inclusion of certain product lines from the acquisition of CMC Materials.
Entegris, Inc. Price, Consensus and EPS Surprise
Entegris, Inc. price-consensus-eps-surprise-chart | Entegris, Inc. Quote
Advanced Planarization Solutions (APS) revenues increased 716.9% year over year to $250.3 million. The upside can be attributed to significant growth in SiC slurries and sales from the CMC Materials acquisition.
Microcontamination Control (MC) revenues increased 1% year over year to $269.3 million. The upside was driven by increased demand for its liquid microcontamination products and easing supply chain constraints.
Advanced Materials Handling (AMH) revenues increased 10.5% year over year to $218.9 million, courtesy of strong demand for wafer handling and fluid handling solutions.
Operating Details
Adjusted operating expenses were $204.3 million, which expanded by 250 bps to 22.1%.
Entegris reported a non-GAAP operating margin of 22.2%, which declined 590 bps year over year.
Entegris reported adjusted EBITDA margin of 27.3%, contracting 450 bps year over year.
Balance Sheet & Cash Flow
Enetgris had cash, cash equivalents & restricted cash of $709 million as of Mar 31, 2023, compared with $563.4 million as of Dec 31, 2022.
The company had long-term debt, excluding current maturities of $5.63 billion compared with $5.63 billion as of Dec 31, 2022.
It generated $151.9 million in cash from operations compared with $32.1 million in the previous quarter.
Free cash flow was $17.9 million compared with cash outflow of $115.3 million reported in the prior quarter.
Guidance
Second-quarter 2023 revenues are expected between $870 million and $900 million for the combined company of Entegris and CMC Materials.
Adjusted EBITDA margin is expected to be 27%-28% of sales in the second quarter of 2023.
Zacks Rank & Stocks to Consider
Entegris currently carries a Zacks Rank #3 (Hold).
ENTG’s shares have increased 42.5% compared with the Zacks Computer and Technology sector’s rise of 21.6% in the year-to-date period.
Here are some better-ranked stocks worth considering in the broader sector.
NVIDIA NVDA carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NVIDIA’s shares have increased 95.5% in the year-to-date period compared with the Zacks Semiconductor – General industry’s rise of 56%. NVDA is scheduled to report its first-quarter fiscal 2024 results on May 24.
MakeMyTrip Limited MMYT carries a Zacks Rank #2.
MMYT’s shares have fallen 6.9% in the year-to-date period compared with the Zacks Internet – Delivery Services industry’s decline of 2.6%. MakeMyTrip is set to report its fourth-quarter fiscal 2023 results on May 16.
Agilent Technologies A carries a Zacks Rank #2.
Agilent’s shares have slumped 14.7% in the year-to-date period compared with the Zacks Electronics – Testing Equipment industry’s rise of 0.9%. A is scheduled to report second-quarter fiscal 2023 results on May 23.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Agilent Technologies, Inc. (A) : Free Stock Analysis Report
Entegris, Inc. (ENTG) : Free Stock Analysis Report
MakeMyTrip Limited (MMYT) : Free Stock Analysis Report
