Entegris (ENTG) shares tumbled 11.10% in pre-market trading on Thursday following the company's disappointing fourth-quarter profit forecast. The semiconductor equipment manufacturer's outlook fell short of analysts' expectations, raising concerns about its near-term performance.
While Entegris reported third-quarter results that were largely in line with estimates, with sales of $807.1 million slightly beating the expected $804.7 million, the company's forward guidance has spooked investors. For the fourth quarter, Entegris expects adjusted earnings per share between $0.62 and $0.69, significantly below the $0.76 per share analysts were anticipating. This projection suggests a potential slowdown in the company's profit growth, despite sales forecasts ranging from $790 million to $830 million.
The company's third-quarter performance showed some signs of pressure, with gross margin declining to 43.5% from 46.0% in the same period last year. Despite highlighting strong momentum in advanced node products, including liquid filtration, purification, and deposition materials, the weaker profit outlook has overshadowed these positive aspects. Investors appear to be recalibrating their expectations for Entegris, leading to the sharp pre-market decline as they reassess the company's valuation in light of the softer profit projections.
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