Unpacking Q3 Earnings: Entegris (NASDAQ:ENTG) In The Context Of Other Semiconductor Manufacturing Stocks

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Entegris (NASDAQ:ENTG) and the best and worst performers in the semiconductor manufacturing industry.

The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.

The 14 semiconductor manufacturing stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.3% while next quarter’s revenue guidance was in line.

Luckily, semiconductor manufacturing stocks have performed well with share prices up 30.2% on average since the latest earnings results.

Weakest Q3: Entegris (NASDAQ:ENTG)

With fabs representing the company’s largest customer type, Entegris (NASDAQ:ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.

Entegris reported revenues of $807.1 million, flat year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a slower quarter for the company with revenue guidance for next quarter missing analysts’ expectations significantly and EPS in line with analysts’ estimates.

Dave Reeder, Entegris’ President and Chief Executive Officer, said: “As I begin my tenure as CEO of Entegris, I want to say how honored I am to lead this exceptional company through its next phase of growth and value creation. In the third quarter, revenue, EBITDA and non-GAAP EPS all met guidance; and we delivered record operating cash flow. We continue to see key wins and strong momentum in products critical to the most advanced nodes, including liquid filtration & purification, deposition materials and CMP consumables.”

Interestingly, the stock is up 7.7% since reporting and currently trades at $101.83.

Read our full report on Entegris here, it’s free.

Best Q3: Teradyne (NASDAQ:TER)

Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ:TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.

Teradyne reported revenues of $769.2 million, up 4.3% year on year, outperforming analysts’ expectations by 3.3%. The business had a stunning quarter with a solid beat of analysts’ adjusted operating income estimates and revenue guidance for next quarter exceeding analysts’ expectations.

The market seems happy with the results as the stock is up 56% since reporting. It currently trades at $225.29.

Is now the time to buy Teradyne? Access our full analysis of the earnings results here, it’s free.

Nova (NASDAQ:NVMI)

Headquartered in Israel, Nova (NASDAQ:NVMI) is a provider of quality control systems used in semiconductor manufacturing.

Nova reported revenues of $224.6 million, up 25.5% year on year, exceeding analysts’ expectations by 1.5%. It was a satisfactory quarter as it also posted a meaningful improvement in its inventory levels but adjusted operating income in line with analysts’ estimates.

Interestingly, the stock is up 16.7% since the results and currently trades at $399.26.

Read our full analysis of Nova’s results here.

Lam Research (NASDAQ:LRCX)

Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ:LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors.

Lam Research reported revenues of $5.32 billion, up 27.7% year on year. This number topped analysts’ expectations by 1.6%. It was a very strong quarter as it also logged revenue guidance for next quarter exceeding analysts’ expectations and a significant improvement in its inventory levels.

The stock is up 55.5% since reporting and currently trades at $219.45.

Read our full, actionable report on Lam Research here, it’s free.

FormFactor (NASDAQ:FORM)

With customers across the foundry and fabless markets, FormFactor (NASDAQ:FORM) is a US-based provider of test and measurement technologies for semiconductors.

FormFactor reported revenues of $202.7 million, down 2.5% year on year. This result beat analysts’ expectations by 1.3%. Overall, it was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is up 50.1% since reporting and currently trades at $71.63.

Read our full, actionable report on FormFactor here, it’s free.

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