Enetgris (ENTG - Free Report) reported second-quarter 2022 non-GAAP earnings of $1 per share, which missed the Zacks Consensus Estimate by 4.76%. However, the bottom line improved 18% year over year. The reported figure was below management’s earnings guidance of $1.02-$1.07.
Revenues of $692 million beat the consensus mark by 3.32%. The top line increased 21% year over year. The reported figure was above management’s revenue guidance of $660 million to $680 million.
The top line and non-GAAP earnings were negatively impacted primarily by losses incurred in foreign exchange transactions. Entegris’ top-line growth was hurt by approximately 3%, while non-GAAP EPS was reduced by 15 cents.
Top-Line Details
Specialty Chemicals and Engineered Materials (SCEM) revenues increased 15.2% year over year to $207.7 million. Growth in SCEM revenues was primarily driven by strong demand for advanced deposition materials and surface preparation solutions.
Microcontamination Control (MC) revenues increased 20.5% year over year to $274.1 million. The upside was driven by increased demand for its products like gas filtrations, liquid filtration and gas purification.
Advanced Materials Handling (AMH) revenues climbed 29.9% year over year to $224.1 million, courtesy of strong demand for wafer handling and fluid handling and measurement solutions.
Operating Details
Adjusted operating expenses were $127.4 million, which contracted by 150 bps to 18.4%.
Entegris reported a non-GAAP operating margin of 26.4%, which decreased 100 bps year over year.
Entegris reported adjusted EBITDA margin of 30%, which decreased 170 bps year over year.
Balance Sheet & Cash Flow
Enetgris had cash, cash equivalents & restricted cash of $2.74 billion as of Jun 30, 2022, compared with $352.7 million as of Mar 31, 2022.
The company had long-term debt, excluding current maturities of $3.49 billion compared with $937.3 million as of Mar 31, 2022.
It generated $111 million in cash from operations compared with $69 million in the previous quarter.
Free cash flow was $3.2 million compared with cash outflow of $20.6 million reported in the prior quarter.
Guidance
Third-quarter 2022 revenues are expected between $1 billion and $1.04 billion for the combined company of Entegris and CMC Materials.
Adjusted EBITDA margin is expected to be 30% of sales in the third quarter of 2022.
Zacks Rank & Stocks to Consider
Entegris currently carries a Zacks Rank #3 (Hold).
ENTG’s shares have tumbled 39.2% compared with the Zacks Computer and Technology sector’s decline of 24.2% in the year-to-date period.
Here are some better-ranked stocks worth considering in the broader sector.
Asure Software (ASUR - Free Report) carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ASUR’s shares have decreased 30.2% in the year-to-date period compared with the Zacks Internet - Delivery Services industry’s decline of 6%. ASUR is scheduled to report second-quarter 2022 results on Aug 8.
Blink Charging (BLNK - Free Report) carries a Zacks Rank #2.
BLNK’s shares have fallen 16.5% in the year-to-date period compared with the Zacks Electronics - Miscellaneous Services industry’s decline of 14.7%. Blink is scheduled to report second-quarter 2022 results on Aug 8.
Angi (ANGI - Free Report) carries a Zacks Rank #2.
ANGI’s shares have slumped 36.6% in the year-to-date period compared with the Zacks Internet - Content industry’s decline of 31.8%. ANGI is scheduled to report second-quarter 2022 results on Aug 9.
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Enetgris (ENTG - Free Report) reported second-quarter 2022 non-GAAP earnings of $1 per share, which missed the Zacks Consensus Estimate by 4.76%. However, the bottom line improved 18% year over year. The reported figure was below management’s earnings guidance of $1.02-$1.07.
Revenues of $692 million beat the consensus mark by 3.32%. The top line increased 21% year over year. The reported figure was above management’s revenue guidance of $660 million to $680 million.
The top line and non-GAAP earnings were negatively impacted primarily by losses incurred in foreign exchange transactions. Entegris’ top-line growth was hurt by approximately 3%, while non-GAAP EPS was reduced by 15 cents.
Top-Line Details
Specialty Chemicals and Engineered Materials (SCEM) revenues increased 15.2% year over year to $207.7 million. Growth in SCEM revenues was primarily driven by strong demand for advanced deposition materials and surface preparation solutions.
Microcontamination Control (MC) revenues increased 20.5% year over year to $274.1 million. The upside was driven by increased demand for its products like gas filtrations, liquid filtration and gas purification.
Advanced Materials Handling (AMH) revenues climbed 29.9% year over year to $224.1 million, courtesy of strong demand for wafer handling and fluid handling and measurement solutions.
Operating Details
Adjusted operating expenses were $127.4 million, which contracted by 150 bps to 18.4%.
Entegris reported a non-GAAP operating margin of 26.4%, which decreased 100 bps year over year.
Entegris reported adjusted EBITDA margin of 30%, which decreased 170 bps year over year.
Balance Sheet & Cash Flow
Enetgris had cash, cash equivalents & restricted cash of $2.74 billion as of Jun 30, 2022, compared with $352.7 million as of Mar 31, 2022.
The company had long-term debt, excluding current maturities of $3.49 billion compared with $937.3 million as of Mar 31, 2022.
It generated $111 million in cash from operations compared with $69 million in the previous quarter.
Free cash flow was $3.2 million compared with cash outflow of $20.6 million reported in the prior quarter.
Guidance
Third-quarter 2022 revenues are expected between $1 billion and $1.04 billion for the combined company of Entegris and CMC Materials.
Adjusted EBITDA margin is expected to be 30% of sales in the third quarter of 2022.
Zacks Rank & Stocks to Consider
Entegris currently carries a Zacks Rank #3 (Hold).
ENTG’s shares have tumbled 39.2% compared with the Zacks Computer and Technology sector’s decline of 24.2% in the year-to-date period.
Here are some better-ranked stocks worth considering in the broader sector.
Asure Software (ASUR - Free Report) carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ASUR’s shares have decreased 30.2% in the year-to-date period compared with the Zacks Internet - Delivery Services industry’s decline of 6%. ASUR is scheduled to report second-quarter 2022 results on Aug 8.
Blink Charging (BLNK - Free Report) carries a Zacks Rank #2.
BLNK’s shares have fallen 16.5% in the year-to-date period compared with the Zacks Electronics - Miscellaneous Services industry’s decline of 14.7%. Blink is scheduled to report second-quarter 2022 results on Aug 8.
Angi (ANGI - Free Report) carries a Zacks Rank #2.
ANGI’s shares have slumped 36.6% in the year-to-date period compared with the Zacks Internet - Content industry’s decline of 31.8%. ANGI is scheduled to report second-quarter 2022 results on Aug 9.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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