The 10-second takeaway
For the quarter ended June 29 (Q2), Entegris beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share shrank. GAAP earnings per share dropped.
Margins dropped across the board.
Entegris booked revenue of $177.5 million. The eight analysts polled by S&P Capital IQ predicted sales of $170.1 million on the same basis. GAAP reported sales were 5.7% lower than the prior-year quarter's $188.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.15. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.11 per share. Non-GAAP EPS of $0.15 for Q2 were 6.3% lower than the prior-year quarter's $0.16 per share. GAAP EPS of $0.14 for Q2 were 13% lower than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.7%, 30 basis points worse than the prior-year quarter. Operating margin was 14.9%, 190 basis points worse than the prior-year quarter. Net margin was 11.1%, 40 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $187.2 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $716.7 million. The average EPS estimate is $0.55.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 137 members out of 151 rating the stock outperform, and 14 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Entegris a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Entegris is outperform, with an average price target of $11.50.
Is Entegris your best play in technology? Computers, mobile devices, and related services are creating huge amounts of valuable data, but only for companies that can crunch the numbers and make sense of it. Meet the leader in this field in "The Only Stock You Need To Profit From the NEW Technology Revolution." Click here for instant access to this free report.
- Add Entegris to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.