NEW YORK – Rogers Corporation (NYSE: NYSE:) reported declines in both earnings and revenue for the first quarter of 2024 as the company navigates changing market conditions.
The company’s adjusted earnings per share (EPS) of $0.58 missed analysts’ estimates of $0.75, while revenue reached $213.4 million, also below the consensus estimate of $220 million.
Despite the shortage, Rogers President and CEO Colin Gouveia expressed optimism about the improvement in demand seen in the first quarter, particularly in aerospace and defense sales. Gouveia also noted positive trends in the overall industrial market, expecting further improvement in sales in the coming quarters.
However, the company’s guidance for the second quarter suggests a cautious outlook.
In the first quarter, Rogers’ net sales increased 4.3% compared to the prior quarter, driven by higher sales in its AES (NYSE:) and EMS business units.
However, gross margin declined to 32.0% from 32.9% due to unfavorable product mix despite higher sales volumes. The Company was able to reduce selling, general and administrative expenses by $4.3 million, primarily due to lower professional services fees and other administrative expenses.
GAAP operating margin decreased to 5.5% from 14.9% in the prior quarter, primarily due to lower other operating income, supported by a strong recovery in insurance assets in the prior quarter. However, adjusted operating margin increased 120 basis points to 7.5%.
Looking ahead, Rogers gave guidance for the second quarter of 2024 with an expected EPS range of $0.50 to $0.70. This forecast is below the analyst consensus of $0.70. The company also expects second-quarter revenue to be between $210 million and $220 million, with the midpoint slightly below the consensus estimate of $216.8 million.
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While the company did not specify whether the stock would move up or down by percentage, its guidance for the next quarter indicates more conservative expectations than market estimates. Rogers remains focused on improving profitability and cash flow and positioning itself for growth as demand increases, CEO Gouveia said.
The company’s cash and cash equivalents at the end of the quarter were $116.9 million after repaying $30.0 million in principal under its revolving credit facility.
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