Semiconductor equipment and material supplier Entegris Inc ENTG reported its fiscal fourth-quarter 2024 earnings Thursday before the market opened.

What To Know: The company reported adjusted EPS of 84 cents, topping analyst consensus estimate of 78 cents. Entegris reported sales of $849.84 million, marking a 5% growth year-over-year and quashing the analyst consensus estimate of $823.12 million.

Segments: Materials Solutions revenue declined 1.1% to $361.08 million. Advanced Purity Solutions revenue grew by 9.2% to $491.19 million.

However, the company’s adjusted net sales, excluding the impact of divestitures, increased by 11% Y/Y.

Materials Solutions segment profit grew 45% to $771.22 million. Purity Solutions segment profit increased 14.4% to $134.97 million.

Entegris also reported other key financial indicators, including an adjusted EBITDA margin of 29.2% (versus 26.0% Y/Y), an adjusted operating margin of 23.5% (versus 20.7% Y/Y), and an adjusted gross margin of 45.6% (versus 42.4% Y/Y).

CEO Bertrand Loy noted that Entegris continued to outperform the market, with EBITDA growth twice its sales growth rate.

Loy flagged limited visibility outside of advanced logic and AI-driven applications as it enters 2025. The company will continue to fund critical investments that improve its long-term competitiveness and position it for the industry upturn. Loy found the company well-positioned for the upcoming technology node transitions, likely generating incremental content per wafer opportunities.

Outlook: The company issued guidance for the fiscal first quarter of 2025. Entegris anticipates sales between $775 million-$805 million versus analyst estimates of $796.26 million. Furthermore, the company expects adjusted EPS from 64 cents to 71 cents below analyst estimates of 74 cents.

Entegris stock lost over 12% in the last 12 months as multiple Wall Street firms slashed their price targets after a dismal third-quarter print. Loy told customers with significant exposure to AI applications performed well, but the rest of the industry continues to be challenged.

Price Action: ENTG stock is up 5.38% at $109.49 at the last check in Thursday.

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