Entegris Stock Rockets After Chip Gear Supplier Smashes Estimates

Entegris Stock Rockets After Chip Gear Supplier Smashes Estimates

Entegris, a supplier of semiconductor equipment (ENTG), smashed Wall Street's expectations for first-quarter sales and earnings on Thursday. Stocks of ENTG soared after the news.

Billerica, Mass. based company earned an adjusted 65 cents per share on sales $922 million for the quarter ending March. FactSet polled analysts who predicted Entegris to earn 52 cents per share on $893 million in sales. Earnings fell 39% year-over-year, while sales increased 42%.

Entegris forecast adjusted earnings of 56c per share for the current quarter on sales of 885 million dollars. This is based on its midpoint. Wall Street expected earnings of 57c per share on sales $872 million for the second quarter.

In a press release, Bertrand Loy, Chief Executive Officer of the Semiconductor Industry, said that 2023 will continue to be a year of uncertainty for the industry. "Despite these obstacles, we have made progress on key initiatives."

ENTG Stock Breaks Out

ENTG's stock soared by 24% to 96.85 in the morning trading today. ENTG's stock has been up 16.4% in recent trades to 90.90.

According to IBD MarketSmith charts, the move saw ENTG break out of a consolidation pattern of 14 weeks at a purchase point of 89.59.

Loy stated that Entegris was taking steps to streamline their portfolio and reduce debt incurred by the acquisition of CMC Materials. Loy said that the company has recently announced deals to sell its Electronic Chemicals and QED Technologies units, which will generate more than $800,000,000 in proceeds.

Entegris is focused on gaining share

Loy stated that the semiconductor industry was poised to grow at a long-term rate, reaching $1 trillion in 2030.

Entegris will be able to increase its content per wafer as a result of the company's leading capabilities in materials science.

Entegris produces high-purity materials for semiconductors and other industries, including the life sciences.

ENTG is ranked No. 13 out of 29 stocks in IBD's semiconductor equipment industry group, according to the IBD Stock Checkup. According to IBD Stock Checkup, 13 of 29 stocks are in the semiconductor equipment industry sector. Entegris' IBD Composite rating is 67 out 99, which is mediocre.