Stock Story -
What Happened: Shares of semiconductor materials supplier Entegris (NASDAQ:ENTG) fell 12.5% in the morning session after the company reported second-quarter earnings results and provided revenue guidance for the next quarter, which missed analysts' expectations. Despite what it considers a transition year for the semiconductor industry, the company expects a gradual recovery in the second half of this year. However, this is expected to be realized at "a more moderate pace than previously expected." On a more positive note, revenue and EPs exceeded expectations during the quarter. Overall, it was a mixed but challenging quarter for the company, given the soft outlook.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Entegris? Find out by reading the original article on StockStory, it's free.
What is the market telling us: Entegris's shares are very volatile and over the last year have had 8 moves greater than 5%. But moves this big are very rare even for Entegris and that is indicating to us that this news had a significant impact on the market's perception of the business.
The biggest move we wrote about over the last year was 3 months ago, when the stock dropped 6.9% on the news that the company reported first-quarter results and provided revenue guidance for the next quarter below analysts' expectations. In addition, its inventory levels increased. On the other hand, profitability improved as Entegris blew past analysts' EPS and adjusted EBITDA expectations during the quarter. Looking ahead, Management maintained the outlook for the semiconductor industry with expectations for inventory normalization based on a gradual market recovery throughout the year. Overall, this was a mixed quarter for Entegris.
Entegris is up 0.6% since the beginning of the year, but at $114.74 per share it is still trading 21.7% below its 52-week high of $146.48 from July 2024. Investors who bought $1,000 worth of Entegris's shares 5 years ago would now be looking at an investment worth $2,637.
