The 10-second takeaway
For the quarter ended June 30 (Q2), CTS missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share increased. GAAP earnings per share dropped to a loss.
Gross margins grew, operating margins expanded, net margins shrank.
CTS reported revenue of $151.6 million. The one analyst polled by S&P Capital IQ anticipated revenue of $155.6 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.20. The one earnings estimate compiled by S&P Capital IQ forecast $0.19 per share. Non-GAAP EPS of $0.20 for Q2 were 11% higher than the prior-year quarter's $0.18 per share. GAAP EPS were -$0.34 for Q2 compared to $0.10 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 23.4%, 610 basis points better than the prior-year quarter. Operating margin was 5.9%, 450 basis points better than the prior-year quarter. Net margin was -7.5%, 960 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $160.6 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $628.6 million. The average EPS estimate is $0.80.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CTS is buy, with an average price target of $14.25.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.