Company Reports

Entegris reported strong second-quarter earnings as double-digit revenue growth drove margin expansion.

Entegris is a leading supplier of purification solutions and specialty chemicals and materials for the semiconductor industry. Nearly all revenue comes from the semiconductor industry, with most coming from semiconductor fabricators. Entegris also sells its purification solutions to semiconductor equipment makers and other manufacturers of semiconductor chemicals and materials. It holds market-leading positions in multiple parts of the semiconductor fabrication process, including filtration, microenvironments, and chemical mechanical planarization slurries.

Entegris reported solid first-quarter results as higher revenue drove double-digit operating profit growth year over year. The shares were down 7% intraday on April 30 as the market reacted to management's third-quarter revenue guidance below FactSet consensus estimates.

Entegris is a leading supplier of purification solutions and specialty chemicals and materials for the semiconductor industry. The majority of its revenue comes from semiconductor fabricators. Entegris also sells its purification solutions to semiconductor equipment makers and other semiconductor chemicals and materials manufacturers. It holds market-leading positions in multiple parts of the semiconductor fabrication process, including filtration, microenvironments, and chemical mechanical planarization slurries.

Shares of semiconductor materials firms Entegris and Qnity have fallen 20% and 15%, respectively, since the beginning of the war in the Middle East. The conflict raises energy costs, disrupts global ocean shipping, and could threaten energy supply to key markets such as Taiwan and South Korea.

Entegris is a leading supplier of purification solutions and specialty chemicals and materials for the semiconductor industry. The majority of its revenue comes from semiconductor fabricators. Entegris also sells its purification solutions to semiconductor equipment makers and other semiconductor chemicals and materials manufacturers. It holds market-leading positions in multiple parts of the semiconductor fabrication process, including filtration, microenvironments, and chemical mechanical planarization slurries.

Entegris' fourth-quarter earnings were down year over year driven by lower volumes and the ramp up of its two new plants. Entegris shares were up 9% on Feb. 10 as the market reacted to management's guidance for growth in 2026.

Entegris is a leading supplier of purification solutions and specialty chemicals and materials for the semiconductor industry. The majority of revenue comes from semiconductor fabricators, while Entegris also sells its purification solutions to semiconductor equipment makers and other semiconductor chemicals and materials manufacturers. The company holds market-leading positions in multiple parts of the semiconductor fabrication process including filtration, microenvironments, chemical mechanical planarization slurries.

Entegris' third-quarter results reflected near-term headwinds weighing on profits as adjusted EBITDA was down versus the prior-year quarter. Entegris shares were down over 7% at the time of writing as the market reacted negative to fourth-quarter guidance coming in below FactSet consensus estimates.

Entegris is a leading supplier of purification solutions and specialty chemicals and materials for the semiconductor industry. The majority of revenue comes from semiconductor fabricators, while Entegris also sells its purification solutions to semiconductor equipment makers and other semiconductor chemicals and materials manufacturers. The company holds market-leading positions in multiple parts of the semiconductor fabrication process including filtration, microenvironments, chemical mechanical planarization slurries.

Entegris announced it plans to invest $700 million in research and development spending and related capital expenditures in the US over the next three years. Entegris shares closed 3% on the day Aug. 21 as the market responded favorably to the news.

US President Donald Trump announced a plan to impose 100% tariffs on semiconductors, but with exceptions for companies with US manufacturing investment commitments. Entegris shares were up slightly on the news.

Entegris' saw lower second-quarter profits versus a year ago due to a slowdown in the advanced purity solutions segment. Shares were down 13% at the time of writing as the market reacted negatively to management's third-quarter guidance, which came in below FactSet consensus estimates.

Entegris is a leading supplier of purification solutions and specialty chemicals and materials for the semiconductor industry. The majority of revenue comes from semiconductor fabricators, while Entegris also sells its purification solutions to semiconductor equipment makers and other semiconductor chemicals and materials manufacturers. The company holds market-leading positions in multiple parts of the semiconductor fabrication process including filtration, microenvironments, chemical mechanical planarization slurries.

Entegris is a leading supplier of purification solutions and specialty chemicals and materials for the semiconductor industry. The majority of revenue comes from semiconductor fabricators, while Entegris also sells its purification solutions to semiconductor equipment makers and other semiconductor chemicals and materials manufacturers. The company holds market-leading positions in multiple parts of the semiconductor fabrication process including filtration, microenvironments, chemical mechanical planarization slurries.

Entegris is a leading provider of filtration and purification solutions and chemicals and materials for semiconductor manufacturing. Its products allow semiconductor fabricators to continue to make smaller, more powerful chips.

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.

We are dropping analyst coverage of Entegris. We provide broad coverage of more than 1,500 companies across more than 90 industry groups and adjust our coverage as necessary based on client demand and investor interest.

We plan to raise our $38 fair value estimate by $1-$2 for narrow-moat electronic materials supplier Entegris following its record first-quarter results and our updated financial forecast. Key drivers include forecasts of strong semiconductor industry growth and investment, along with our confidence in the company’s ability to profitably manage its rapid growth.

Entegris is one of the largest global suppliers of electronic materials that facilitate production of semiconductors and other microelectronics products. These include specialized gases, chemical formulations, materials, instrumentation, packaging, and handling equipment.