What To Expect From Entegris’s (ENTG) Q1 Earnings

Petr Huřťák /
2023/05/10 6:59 am EDT

Semiconductor materials supplier Entegris (NASDAQ:ENTG) will be reporting results tomorrow before market open. Here's what to expect.

Last quarter Entegris reported revenues of $946.1 million, up 48.9% year on year, missing analyst expectations by 0.43%. Despite the strong topline growth, it was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.

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 grow 37.4% year on year to $892.7 million, improving on the 26.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.52 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 four times over the last two years.

Looking at Entegris's peers in the semiconductor manufacturing segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Teradyne's revenues decreased 18.2% year on year, beating analyst estimates by 2.4% and Lam Research reported revenue decline of 4.7% year on year, exceeding estimates by 0.58%. Teradyne traded up 8.46% on the results, Lam Research was down 1.38%. Read our full analysis of Teradyne's results here and Lam Research's results here.

The technology sell-off has been putting pressure on stocks since November 2021 and while some of the semiconductor manufacturing stocks have fared somewhat better, they have not been spared, with share price declining 7.34% over the last month. Entegris is up 1.71% during the same time, and is heading into the earnings with analyst price target of $99.2, compared to share price of $77.8.

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.

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