Semiconductor equipment supplier Entegris on Tuesday beat analyst expectations for the first quarter and guided higher for the current period and full year. But ENTG stock fell after the report.
The Billerica, Mass.-based company earned an adjusted $1.06 a share on sales of $649.6 million in the March quarter. Analysts polled by FactSet expected Entegris to earn 99 cents a share on sales of $641 million. On a year-over-year basis, Entegris earnings increased 51% while sales climbed 27%.
For the current quarter, Entegris forecast adjusted earnings of $1.05 a share on sales of $670 million. That's based on the midpoint of its outlook. Analysts had been looking for earnings of $1.03 a share on sales of $663 million in the second quarter.
On the stock market today, ENTG stock dropped 4.2% to close at 109.78. But it was a rough day overall for the stock market.
Positive Outlook For Full Year
Entegris makes high-purity materials and processes for the semiconductor industry and other tech fields, including life sciences.
"While supply chain issues continue to be a concern for the balance of the year, industry growth remains robust and we expect record demand for our products," Chief Executive Bertrand Loy said in a news release. "As a result we are raising our outlook for the full year 2022."
He added, "Looking further ahead, we continue to have a high degree of conviction in the positive secular growth of the semiconductor market; the rapid pace of transition to more complex device architectures; and the growing importance of our value proposition, which will result in a steadily expanding Entegris content per wafer."
ENTG Stock Is A Long-Term Leader
ENTG stock is in the IBD Long-Term Leaders Portfolio.
According to IBD Stock Checkup, ENTG stock ranks eighth out of 31 stocks in IBD's semiconductor equipment industry group. It has a so-so IBD Composite Rating of 75 out of 99. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
Entegris stock hit a record high of 158 on Nov. 22. But shares fell after Entegris announced a deal to buy CMC Materials on Dec. 15. Entegris is buying CMC in a cash-and-stock deal with an enterprise value of about $6.5 billion. Entegris expects the deal to close in the second half of 2022.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
