What Happened?
Shares of semiconductor materials supplier Entegris (NASDAQ: ENTG) fell 8.6% in the afternoon session after the company reported weak first quarter 2025 results which lacked standout positives, with revenue falling short of estimates and next quarter's revenue guidance missing significantly. The real concern came from the company's second-quarter outlook, which called for up to a 5% revenue decline sequentially and EBITDA margin compression, weighed by tariffs and weak U.S. sales to China. Overall, this quarter could have been better.
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What The Market Is Telling Us
Entegris’s shares are very volatile and have had 23 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock dropped 12.5% on the news that the company reported weak second-quarter 2024 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.
Entegris is down 23.3% since the beginning of the year, and at $74.61 per share, it is trading 49.1% 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 $1,401.
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