Enetgris ( ENTG Quick Quote 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.
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.
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.
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
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