Friday, February 1, 2013

Entegris Increases Sales but Misses Estimates on Earnings

Entegris (Nasdaq: ENTG  ) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Entegris beat slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Entegris logged revenue of $167.8 million. The eight analysts polled by S&P Capital IQ expected to see revenue of $164.9 million on the same basis. GAAP reported sales were 2.4% higher than the prior-year quarter's $163.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.09. The nine earnings estimates compiled by S&P Capital IQ predicted $0.11 per share. GAAP EPS of $0.08 for Q4 were 72% lower than the prior-year quarter's $0.29 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 39.6%, 160 basis points worse than the prior-year quarter. Operating margin was 8.3%, 500 basis points worse than the prior-year quarter. Net margin was 6.7%, 1,780 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $167.5 million. On the bottom line, the average EPS estimate is $0.12.

Next year's average estimate for revenue is $724.4 million. The average EPS estimate is $0.62.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 135 members out of 149 rating the stock outperform, and 14 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Entegris a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Entegris is outperform, with an average price target of $10.50.

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