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Entegris, Inc. Just Beat EPS By 32%: Here's What Analysts Think Will Happen Next

NASDAQ:ENTG) just released its quarterly report and things are looking bullish. The company beat both earnings and revenue forecasts, with revenue of US$448m, some 7.4% above estimates, and statutory earnings per share (EPS) coming in at US$0.50, 32% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.” data-reactid=”28″>Entegris, Inc. (NASDAQ:ENTG) just released its quarterly report and things are looking bullish. The company beat both earnings and revenue forecasts, with revenue of US$448m, some 7.4% above estimates, and statutory earnings per share (EPS) coming in at US$0.50, 32% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Entegris ” data-reactid=”29″>Check out our latest analysis for Entegris

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Taking into account the latest results, the consensus forecast from Entegris’ seven analysts is for revenues of US$1.78b in 2020, which would reflect a satisfactory 5.6% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to grow 17% to US$1.97. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.64b and earnings per share (EPS) of US$1.61 in 2020. So it seems there’s been a definite increase in optimism about Entegris’ future following the latest results, with a very substantial lift in the earnings per share forecasts in particular.

With these upgrades, we’re not surprised to see that the analysts have lifted their price target 19% to US$73.78per share. There’s another way to think about price targets though, and that’s to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Entegris analyst has a price target of US$86.00 per share, while the most pessimistic values it at US$63.00. As you can see, analysts are not all in agreement on the stock’s future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It’s pretty clear that there is an expectation that Entegris’ revenue growth will slow down substantially, with revenues next year expected to grow 5.6%, compared to a historical growth rate of 10.0% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.5% per year. So it’s pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Entegris.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Entegris following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

see them free on our platform here..” data-reactid=”51″>With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Entegris going out to 2022, and you can see them free on our platform here..

4 warning signs for Entegris that you should be aware of.” data-reactid=”56″>Don’t forget that there may still be risks. For instance, we’ve identified 4 warning signs for Entegris that you should be aware of.

Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”57″>This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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