Entegris Clocks 20% Revenue Growth In Q3, Issues Positive Q4 Outlook

Entegris Inc ENTG reported third-quarter FY21 sales growth of 20% year-on-year to $579.5 million, missing the consensus of $583.6 million.
Revenue from Specialty Chemicals and Engineered Materials rose 17.2% Y/Y to $176.4 million. Microcontamination Control expanded 16.7% Y/Y to $225.9 million. Advanced Materials Handling improved 29% Y/Y to $186.2 million.
Margins: The adjusted gross margin contracted 140 basis points to 45.6%, and the adjusted operating margin expanded 100 basis points to 26.3%.
The non-GAAP EPS of $0.92 beat the analyst consensus of $0.87.
Entegris generated $149.5 million in operating cash flow and held $475.8 million in cash and equivalents.
"In the third quarter, we continued to deliver on our growth strategy in a very dynamic supply chain environment, CEO Bertrand Loy said. I am proud that we have been able to achieve over 23 percent organic sales growth year-to-date," said CEO Bertrand Loy.
Outlook: Entegris sees Q4 sales of $580 million - $600 million versus the consensus of $598.8 million. It sees non-GAAP EPS of $0.87 - $0.92 against the consensus of $0.91.
"While we expect some of the supply chain issues to linger, the record demand for our solution set continues and we are maintaining our outlook for the full year 2021," Loy added.
Price Action: ENTG shares closed lower by 2.35% at $132.85 on Tuesday.

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