ENTG Beats EPS Estimates; Citi Maintains Hold Rating

Entegris

delivered another solid qtr, and guide stronger than expected given current environment. In terms of core semi biz, Citi is encouraged as its consumables revenue per wafer start is finally getting back on track. Growth in unit driven rev and higher consumables rev/wafer start indicate share gain in advanced nodes; strong cash flow adding ~$80MM net cash in CY10; capex rev +12% Q/Q in Q3, finally on pace with OEM growth. Downside risks include unit-driven business facing more head-wind as capacity utilization starting to decline and wafer starts moderate; gross margin under pressure, impacted by mix/possibility ASP decline; new products growth remained muted. Citi has a Hold rating with a $6 PT on Entegris ENTG is trading lower at $5.99