ENTG - Entegris stock soars as results impress Wall St. on strong position supply chain relief

2023-05-11 15:37:16 ET

Shares of Entegris ( NASDAQ: ENTG ) surged as much as 24% on Thursday after the chip material supplier reported top and bottom line beat for its first-quarter results.

The company posted Q1 non-GAAP EPS of $0.65, topping estimates by 13 cents. Net sales of $922.39 million was up 42% from last year and ahead of analyst expectations by at least $29.72 million.

Net sales breakdown: Specialty Chemicals and Engineered Materials $198M + Advanced Planarization Solutions $250.3M + Microcontamination Control $269.3M + Advanced Materials Handling $218.9M - Inter-segment elimination $14.1M.

CEO Bertrand Loy, during an earnings call with analysts , said Q1 sales outperformance was driven in large part by the "strong position" at the leading-edge technology nodes and also from the impact of easing supply chain constraints, particularly for AMH and MC divisions.

For the three months ended April 1, GAAP net loss was $88.2 million, or a loss of 59 cents.

GAAP net loss for the quarter included $88.9M of goodwill impairment recorded on the Electronic Chemicals business sale, $57.6M of amortization of intangible assets, $17M of integration costs, and $22.5M of other net costs.

Other Q1 metrics : Adjusted EBITDA $251.5M, Cash and cash equivalents at quarter-end $709M, SG&A expenses $169.9M, Adjusted gross margin as a percentage of sales 44.3%.

For the second quarter, the company sees net sales in the $870–900 million range and adjusted EBITDA of $238–254 million.

Q2 GAAP EPS is forecasted to be between 9 and 14 cents, while non-GAAP EPS is expected to be around 53 and 58 cents.

The Seeking Alpha consensus estimate for Q2 net sales is $871.6M and EPS is $0.57.

The company also expects 2023 non-GAAP EPS to exceed $2.30 per share. The consensus estimate is $2.49.

ETNG stock is up 22% year-to-date as of Wednesday's close.

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