BILLERICA, Mass. - Entegris, Inc. (NASDAQ: NASDAQ:ENTG), a global leader in advanced materials and process solutions for the semiconductor industry, reported its financial outcomes for the first quarter ended March 30, 2024.
The company announced an adjusted EPS of $0.68, surpassing the analyst estimate of $0.62. However, revenue for the quarter was $771 million, which did not meet the consensus estimate of $775.13 million. The stock was down 0.88% premarket Wednesday.
The company's president and CEO, Bertrand Loy, expressed satisfaction with the company's performance, highlighting that sales were at the high end of their guidance. Despite the revenue decline of 16% YoY and 5% sequentially, adjusted EBITDA and non-GAAP EPS exceeded their guidance. Loy attributed the strong results to increased critical R&D investments and the completion of planned divestitures, including the sale of the Pipeline and Industrial Materials (PIM) business. This allowed the company to pay down over $400 million of debt.
Looking ahead, Entegris provided guidance for the second quarter of 2024, projecting an EPS range of $0.68 to $0.73, which falls below the analyst consensus of $0.73. Revenue expectations of $790 million to $810 million were also set below the consensus estimate of $813.4 million. The midpoint of the revenue guidance suggests an 8.5% sequential increase, excluding the impact of divestitures.
Loy remains optimistic about the semiconductor industry's long-term growth prospects, citing a period of unprecedented technology change and device complexity. He believes Entegris is well-positioned to capitalize on these trends due to its core competencies in materials science and materials purity.
Entegris operates through three segments: Materials Solutions, Microcontamination Control, and Advanced Materials Handling, offering a range of solutions that support semiconductor manufacturing and other high-technology industries.
The company's financial health was further demonstrated by a significant reduction in GAAP net income loss YoY, from ($88,166) in the first quarter of the previous year to $45,266 in the current quarter. Additionally, the GAAP diluted EPS improved from a loss of ($0.59) to a gain of $0.30 in the same period.
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