The 10-second takeaway
For the quarter ended Sep. 30 (Q3), CTS whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share didn't change.
Gross margins grew, operating margins dropped, net margins expanded.
CTS notched revenue of $137.4 million. The three analysts polled by S&P Capital IQ expected to see a top line of $156.5 million on the same basis. GAAP reported sales were 6.0% lower than the prior-year quarter's $146.1 million.
EPS came in at $0.20. The three earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS of $0.17 were the same as the prior-year quarter.
For the quarter, gross margin was 19.4%, 60 basis points better than the prior-year quarter. Operating margin was 2.1%, 60 basis points worse than the prior-year quarter. Net margin was 4.3%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $160.5 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $617.9 million. The average EPS estimate is $0.71.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CTS is buy, with an average price target of $14.00.
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