Entegris, Inc. (NASDAQ:ENTG) shares fell 4.2% on Thursday, after the semiconductor materials supplier issued fourth-quarter guidance that came in below expectations, overshadowing an otherwise steady third-quarter performance.
For the third quarter, the company reported adjusted earnings of $0.72 per share, in line with analyst estimates, on revenue of $807 million, slightly above the $804.17 million consensus. Revenue was virtually flat year-over-year, compared with $807.7 million in the same period last year.
Looking ahead, Entegris said it expects fourth-quarter adjusted earnings between $0.62 and $0.69 per share on revenue of $790 million to $830 million. The midpoint of that range falls short of market forecasts, prompting investors to sell off shares in early trading.
“In the third quarter, revenue, EBITDA and non-GAAP EPS all met guidance; and we delivered record operating cash flow,” said Dave Reeder, Entegris’ President and Chief Executive Officer.
“We continue to see key wins and strong momentum in products critical to the most advanced nodes, including liquid filtration & purification, deposition materials and CMP consumables.”
Entegris reported an adjusted gross margin of 43.6%, down from 46.0% a year earlier, while adjusted EBITDA accounted for 27.3% of sales, compared with 28.8% in the prior-year period.
Despite the cautious near-term outlook, Reeder remained upbeat about the company’s long-term prospects.
“Because of the uniqueness of our value proposition and the quality of our execution, we expect to significantly grow our content per wafer, resulting in market outperformance and margin expansion in the years to come,” he said.
Entegris, which employs about 8,000 people worldwide, provides specialized materials and process solutions that are essential to the semiconductor manufacturing industry.