Semiconductor equipment supplier Entegris on Thursday crushed Wall Street's estimates for sales and earnings in the first quarter. ENTG stock surged on the news.
The Billerica, Mass.-based company earned an adjusted 65 cents a share on sales of $922 million in the March quarter. Analysts polled by FactSet had predicted Entegris earnings of 52 cents a share on sales of $893 million. On a year-over-year basis, earnings fell 39% while sales jumped 42%.
For the current quarter, Entegris predicted adjusted earnings of 56 cents a share on sales of $885 million. That's based on the midpoint of its outlook. Wall Street called for earnings of 57 cents a share on sales of $872 million in the second quarter.
"2023 continues to be an uncertain year for the semiconductor industry," Chief Executive Bertrand Loy said in a news release. "Despite these challenges, we have made good progress on key initiatives."
ENTG Stock Breaks Out
On the stock market today, ENTG stock spiked 24% higher to 96.85. ENTG stock ended the regular session up 19.6% to 93.43.
With the move, ENTG stock broke out of a 14-week consolidation pattern at a buy point of 89.59, according to IBD MarketSmith charts.
Entegris is taking steps to streamline its portfolio and pay down debt from its acquisition of CMC Materials, Loy said. The company recently announced agreements to sell its Electronic Chemicals business and its QED Technologies unit, which will result in more than $800 million in proceeds, he said.
Entegris Focused On Gaining Share
"Looking further ahead, the semiconductor industry is poised for long-term growth, on the way to $1 trillion by 2030," Loy said.
He added, "At the same time, as device architectures become more complex, our leading capabilities in materials science and materials purity enable us to offer our customers unique mission critical solutions, which will translate into rapidly expanding content per wafer for Entegris."
Entegris makes high-purity materials and processes for the semiconductor industry and other tech fields, including life sciences.
ENTG stock ranks No. 13 out of 29 stocks in IBD's semiconductor equipment industry group, according to IBD Stock Checkup. Entegris has a mediocre IBD Composite Rating of 67 out of 99.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
