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BILLERICA, Mass. - On Wednesday, Entegris, Inc. (NASDAQ:ENTG) issued third-quarter guidance that failed to impress investors, despite reporting better-than-expected second quarter results.
The materials supplier for the semiconductor industry saw its shares tumble 3.68% in pre-market trading after the announcement.
The company posted second quarter adjusted earnings of $0.66 per share, exceeding analyst estimates of $0.63. Revenue came in at $792.4 million, significantly above the consensus forecast of $761.22 million and representing a 2% sequential increase, though down 2.5% YoY from $812.7 million.
For the third quarter, Entegris expects revenue between $780 million and $820 million, with the midpoint of $800 million slightly below analyst expectations of $807.9 million. The company forecasts adjusted earnings of $0.68 to $0.75 per share, with the midpoint aligning with the $0.74 consensus.
"Our second quarter revenue grew 2 percent sequentially and was above our guidance range. Growth was driven by demand for our unit-driven solutions, particularly CMP consumables, selective etch and deposition materials," said Bertrand Loy, Entegris’ President and Chief Executive Officer.
The company maintained its adjusted EBITDA margin at 27.3% of sales, slightly below the 27.8% reported in the same quarter last year. Gross margin declined to 44.4% from 46.2% YoY.
Loy noted that while AI applications are driving significant growth in advanced logic and HBM (High Bandwidth (NASDAQ:BAND) Memory), "elsewhere, fab activity remains subdued. And in the short term, the uncertainty around trade policies and the macroeconomic environment will continue to have an impact on semiconductor demand."
Despite near-term challenges, management expressed optimism about the second half of 2025 and maintained confidence in the company’s long-term growth prospects, citing Entegris’ expertise in materials science and purity as increasingly valuable for customers seeking to improve device performance and yields.
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