Entegris (ENTG) Q3 Earnings Report Preview: What To Look For

Petr Huřťák /
2023/11/01 3:03 am EDT

Semiconductor materials supplier Entegris (NASDAQ:ENTG) will be announcing earnings results tomorrow before the bell. Here's what to expect.

Last quarter Entegris reported revenues of $901 million, up 30.1% year on year, beating analyst revenue expectations by 1.6%. It was a mixed quarter for the company, with a significant improvement in its inventory levels but underwhelming revenue guidance for the next quarter.

Is Entegris buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Entegris's revenue to decline 10.3% year on year to $891.9 million, a significant deceleration on the 71.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.60 per share.

Entegris Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Entegris's peers in the semiconductor manufacturing segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. KLA Corporation's revenues decreased 12% year on year, beating analyst estimates by 1.95% and Lam Research reported revenue decline of 31.4% year on year, exceeding estimates by 1.94%. KLA Corporation traded flat on the results, and Lam Research was down 3.5%.

Read our full analysis of KLA Corporation's results here and Lam Research's results here.

The fears around raising interest rates have been putting pressure on tech stocks, and while some of the semiconductor manufacturing stocks have fared somewhat better, they have not been spared, with share price declining 8.81% over the last month. Entegris is down 2.79% during the same time, and is heading into the earnings with analyst price target of $115.1, compared to share price of $88.2.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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The author has no position in any of the stocks mentioned.