BILLERICA, Mass. - Entegris, Inc. (NASDAQ:ENTG) shares tumbled 11% after the semiconductor materials supplier reported third-quarter earnings that missed analyst expectations and provided weaker-than-anticipated guidance for the fourth quarter.
The company posted adjusted earnings per share of $0.77 for Q3, falling short of the $0.78 consensus estimate. Revenue came in at $807.69 million, below the expected $832.44 million and down 9% YoY. However, adjusted net sales, excluding divestitures, increased 7% from the prior year.
For Q4, Entegris forecasts revenue between $810 million and $840 million, well below the $878.8 million analyst consensus. The company also expects adjusted EPS of $0.75 to $0.82, significantly lower than the $0.95 Wall Street estimate.
Bertrand Loy, Entegris' president and CEO, commented on the challenging market conditions: "2024 is a transition year for the semiconductor industry. The market recovery is taking longer than anticipated and 2024 continues to be a year of limited technology transitions."
Despite the near-term headwinds, Loy expressed confidence in the company's long-term prospects: "The technology roadmaps continue to be opportunity-rich for Entegris as our customers drive for more complex device architectures and further miniaturization."
Entegris maintained its focus on profitability, with Q3 adjusted gross margin improving to 46% from 41.4% in the same quarter last year. The company expects adjusted EBITDA of approximately 28.5% to 29.5% of sales in Q4.
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