Entegris’ Q2 Earnings Preview

Entegris, listed on the NASDAQ:ENTG, is a key player in the semiconductor industry, providing materials and solutions for advanced manufacturing processes. The company recently released its financial results for the first quarter of 2025, offering a detailed look at its performance. This report is essential for investors and stakeholders to understand the company's financial health and strategic direction.

In the first quarter of 2025, Entegris reported earnings per share of $0.67, slightly below the estimated $0.69. The company generated revenue of $773.2 million, which was lower than the anticipated $815.1 million. These figures indicate a shortfall in expected performance, which may prompt investors to reassess their positions.

Despite these results, Entegris maintains a price-to-earnings (P/E) ratio of approximately 40.8. This suggests that investors are willing to pay a premium for each dollar of earnings, reflecting confidence in the company's future growth potential. The price-to-sales ratio of about 3.69 further highlights the value placed on each dollar of sales.

The company's enterprise value to sales ratio stands at around 4.84, indicating how the market values Entegris' total worth relative to its sales. Additionally, the enterprise value to operating cash flow ratio is approximately 24.81, showing the company's valuation in relation to its cash flow from operations. These metrics provide insight into how the market perceives Entegris' financial stability and growth prospects.

Entegris' financial health is further supported by a debt-to-equity ratio of approximately 1.06, indicating a balanced approach to financing its assets. The current ratio of around 3.08 suggests that the company is well-positioned to cover its short-term liabilities with its short-term assets, ensuring liquidity and operational stability.

Entegris, listed on the NASDAQ:ENTG, is a key player in the semiconductor industry, providing materials and solutions for advanced manufacturing processes. The company recently released its financial results for the first quarter of 2025, offering a detailed look at its performance. This report is essential for investors and stakeholders to understand the company's financial health and strategic direction.

In the first quarter of 2025, Entegris reported earnings per share of $0.67, slightly below the estimated $0.69. The company generated revenue of $773.2 million, which was lower than the anticipated $815.1 million. These figures indicate a shortfall in expected performance, which may prompt investors to reassess their positions.

Despite these results, Entegris maintains a price-to-earnings (P/E) ratio of approximately 40.8. This suggests that investors are willing to pay a premium for each dollar of earnings, reflecting confidence in the company's future growth potential. The price-to-sales ratio of about 3.69 further highlights the value placed on each dollar of sales.

The company's enterprise value to sales ratio stands at around 4.84, indicating how the market values Entegris' total worth relative to its sales. Additionally, the enterprise value to operating cash flow ratio is approximately 24.81, showing the company's valuation in relation to its cash flow from operations. These metrics provide insight into how the market perceives Entegris' financial stability and growth prospects.

Entegris' financial health is further supported by a debt-to-equity ratio of approximately 1.06, indicating a balanced approach to financing its assets. The current ratio of around 3.08 suggests that the company is well-positioned to cover its short-term liabilities with its short-term assets, ensuring liquidity and operational stability.

Deutsche Bank analysts provided their outlook on Entegris, Inc. (NASDAQ:ENTG) ahead of the upcoming Q3 announcement, expecting the company to report generally in-line results.

The analysts believe fab output levels to have remained elevated through the quarter, and potentially offsetting any incremental FX headwinds. However, while the analysts reiterated the defensive nature of the company, they now see incremental risks from lower industry wafer starts as early as Q4, which could potentially prompt management to guide conservatively.

Further, while the company should not see a direct impact from the new export restrictions, they remain unsure of the levels of activity that domestic China customers could maintain in 2023, given the lack of access to tools/services necessary to operate fabs.

Deutsche Bank analysts provided their outlook on Entegris, Inc. (NASDAQ:ENTG) ahead of the upcoming Q3 announcement, expecting the company to report generally in-line results.

The analysts believe fab output levels to have remained elevated through the quarter, and potentially offsetting any incremental FX headwinds. However, while the analysts reiterated the defensive nature of the company, they now see incremental risks from lower industry wafer starts as early as Q4, which could potentially prompt management to guide conservatively.

Further, while the company should not see a direct impact from the new export restrictions, they remain unsure of the levels of activity that domestic China customers could maintain in 2023, given the lack of access to tools/services necessary to operate fabs.

Analysts at Deutsche Bank provided their outlook on Entegris, Inc. (NASDAQ:ENTG) ahead of the company’s Q2 earnings, and lowered their price target to $125 from $145.

The company closed its acquisition of CMC Materials, Inc. on July 6th, and the analysts remain positive on the deal as they believe the market is underappreciating the CMP slurries/pads business, and they see the potential for additional accretion from revenue synergies.

On the organic business, however, the analysts are turning more cautious on market growth in 2023, and they now expect industry wafer starts to only grow low-single digit in 2023 and WFE spending to be down approximately 10% year-over-year. Therefore, the analysts estimate ex-acquisition growth of 6%, compared to the prior forecast of 12%.

The analysts updated their model to include CMC Materials starting in Q3/22, resulting in an increase in the full 2022-year EPS estimate from $4.35 to $4.45 and 2023-year EPS from $4.85 to $5.00.

The analysts continue to believe the deal could be accretive to the company’s EPS by around 15% in the first year following closing, seeing the potential for additional accretion from revenue synergies.

As the analysts believe the pressure since the deal announcement is overdone, it upgraded the company to buy from hold, maintaining its $160 price, which represents a potential 25% upside.