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Entegris (ENTG) Q2 Earnings Miss Estimates, Revenues Up Y/Y

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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.

Entegris, Inc. Price, Consensus and EPS Surprise

Entegris, Inc. Price, Consensus and EPS Surprise

Entegris, Inc. price-consensus-eps-surprise-chart | Entegris, Inc. Quote

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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