No Surprises in Entegris' 2Q Results; Maintaining FVE

Nothing about narrow-moat-rated Entegris' latest results alters our long-term view of the firm. Even though the stock is down nearly 4% at the time of writing, we are maintaining both our $38 per share fair value estimate, as well as our narrow moat rating. For the second quarter of 2018, sales grew 16% year over year on a reported basis, and 4% sequentially. To us, this indicates that Entegris likely gained share during the quarter in its markets since its growth outpaced that of the industries it plays in. Growth was broad-based during the quarter, with double-digit rates of growth across all its divisions. Both advanced materials handling and microcontamination control had strong sales growth of 19% and 20% year over year, respectively, and each also grew 5% sequentially. Even with strong top line figures flowing through, year-to-date revenue is in line with our top line projections for full-year 2018.