Why Shares of Entegris Inc. Jumped Today
Image source: Entegris.
What: Shares of Entegris (NASDAQ: ENTG), a provider of yield-enabling products and materials for the semiconductor industry, jumped on Wednesday following the company's second-quarter report. Entegris handily beat analyst estimates on all fronts, driving the stock 10% higher as of noon.
So what: Entegris reported quarterly revenue of $303.1 million, up 8% year over year and about $24 million higher than the average analyst estimate. The critical materials handling segment generated $194.9 million of revenue, growing by 11.8% year over year, while the electronic materials segment grew revenue by 1.6% to $108.2 million.
Non-GAAP EPS came in at $0.28, up from $0.24 during the prior-year period and $0.08 higher than analysts were expecting. On a GAAP basis, EPS was $0.23, up from $0.17 during the same period last year. Higher revenue was the main driver of earnings growth.
Entegris expects to generate between $285 million and $300 million of revenue during the third quarter, along with $0.23 to $0.26 in non-GAAP EPS. During the third quarter of 2015, the company reported $270.3 million of revenue and $0.23 of non-GAAP EPS.
Now what: "I am very pleased with the quality of our execution and the performance of a number of our new products, as we achieved record sales and earnings per share," said CEO Bertrand Loy. He continued:
With Entegris easily beating analyst estimates and guiding for continued revenue and earnings growth, it's no surprise investors are pushing the stock higher.
A secret billion-dollar stock opportunity The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early, in-the-know investors! To be one of them, just click here.
Timothy Green has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.