Rogers (NYSE:ROG – Get Free Report) released its quarterly earnings data on Tuesday. The electronics maker reported $1.39 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.19 by $0.20, FiscalAI reports. Rogers had a return on equity of 5.17% and a net margin of 3.75%. The firm had revenue of $236.10 million during the quarter, compared to analysts’ expectations of $238.00 million.
Here are the key takeaways from Rogers’ conference call:
- Third-quarter performance improved substantially: sales rose 9% year over year to $236.1 million, adjusted EPS increased 54% to $1.39, and adjusted EBITDA grew 28% to $47.7 million, with EBITDA margin reaching 20.2%.
- Growth was broad-based across all end markets, led by electronics and communications, automotive, and aerospace and defense. Rogers also secured new design wins in EV battery applications, data centers, aerospace and defense, and energy storage.
- Management expects continued year-over-year improvement in the fourth quarter, guiding to approximately 9% revenue growth, 12% adjusted EPS growth, and 16% adjusted EBITDA growth at the midpoint, despite normal seasonal sequential revenue declines.
- Strong operating cash flow lifted cash and short-term investments to $236.4 million, while the company repurchased $9.3 million of shares and said it is evaluating additional buybacks and potential acquisitions.
- Quarterly sales fell slightly short of the midpoint of guidance because of supply constraints and some customer orders being pushed out. Higher commodity costs remain a margin headwind, and fourth-quarter adjusted EPS guidance of $0.90–$1.10 implies only modest growth at the midpoint.
Rogers Stock Up 5.2%
Shares of NYSE:ROG traded up $6.60 during trading on Tuesday, reaching $134.32. The stock had a trading volume of 279,455 shares, compared to its average volume of 233,955. Rogers has a 52 week low of $75.14 and a 52 week high of $169.00. The firm has a market capitalization of $2.40 billion, a price-to-earnings ratio of 76.76 and a beta of 0.43. The stock has a fifty day simple moving average of $135.80 and a two-hundred day simple moving average of $126.57.
Analyst Ratings Changes
Several analysts have commented on the stock. Wall Street Zen downgraded shares of Rogers from a “buy” rating to a “hold” rating in a research report on Monday, August 31st. Weiss Ratings upgraded shares of Rogers from a “sell (d)” rating to a “hold (c)” rating in a report on Wednesday, August 12th. Freedom Broker upgraded shares of Rogers to a “strong-buy” rating in a report on Thursday, October 1st. Zacks Research lowered shares of Rogers from a “strong-buy” rating to a “hold” rating in a research note on Thursday, July 23rd. Finally, B. Riley Financial decreased their price objective on shares of Rogers from $225.00 to $195.00 and set a “buy” rating for the company in a report on Thursday, October 22nd. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $195.00.
Check Out Our Latest Research Report on Rogers
Key Stories Impacting Rogers
Here are the key news stories impacting Rogers this week:
- Positive Sentiment: Rogers reported third-quarter adjusted earnings of $1.39 per share, beating the analyst consensus of $1.19 by $0.20. Net sales increased 9.3% year over year, signaling solid demand and operational growth. Rogers Reports Strong Third Quarter Growth and Earnings
- Positive Sentiment: The earnings beat is particularly supportive because Rogers has a high valuation, with a reported price-to-earnings ratio above 76. Stronger-than-expected profitability can help justify that premium and improve investor sentiment.
- Neutral Sentiment: The company’s previously reported quarterly figures showed a 3.75% net margin and 5.17% return on equity, indicating that earnings growth remains a more important focus for investors than current profitability ratios. Rogers Press Release
- Negative Sentiment: Revenue of $236.1 million fell short of analysts’ $238.0 million estimate by approximately $1.9 million. The modest sales miss partially offsets the earnings beat and could limit further upside if management does not raise its outlook.
Rogers Company Profile
Rogers Corporation (NYSE: ROG) is a global manufacturer of engineered materials and specialty components used in demanding applications. The company develops high-performance elastomers, polymer composites, laminates and other material technologies designed to provide electrical insulation, thermal management, vibration control, protection and reliability.
Its products are used in electric and hybrid vehicles, power electronics, telecommunications and 5G infrastructure, aerospace and defense systems, healthcare equipment, renewable energy systems and various industrial applications.
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