NEW YORK – Rogers Corporation (NYSE: NYSE:) reported a miss on both earnings and revenue for the first quarter of 2024, as the company navigates through varying market conditions.
The company’s adjusted earnings per share (EPS) of $0.58 fell short of the analyst estimate of $0.75, while revenue reached $213.4 million, also below the consensus estimate of $220 million.
Despite the shortfall, Rogers’ President and CEO, Colin Gouveia, expressed optimism about the improving demand seen in the first quarter, particularly in aerospace and defense sales. Gouveia also noted positive trends in the general industrial market, anticipating further sales improvements in the upcoming quarters.
However, the company’s guidance for the second quarter suggests a cautious outlook.
For the first quarter, Rogers experienced a 4.3% increase in net sales compared to the previous quarter, attributed to higher sales in the AES (NYSE:) and EMS business units.
However, gross margin saw a decrease to 32.0% from 32.9% due to an unfavorable product mix, despite higher sales volumes. The company managed to reduce selling, general and administrative expenses by $4.3 million, primarily through decreased professional service fees and other administrative costs.
GAAP operating margin declined to 5.5% from 14.9% in the prior quarter, mainly due to a decrease in other operating income, which had been bolstered by a significant insurance recovery in the previous quarter. Adjusted operating margin, however, improved by 120 basis points to 7.5%.
Looking ahead, Rogers provided guidance for the second quarter of 2024, with an expected EPS range of $0.50 to $0.70. This guidance falls below the analyst consensus of $0.70. The company also anticipates second-quarter revenue to be between $210 million and $220 million, with the midpoint slightly below the consensus estimate of $216.8 million.
While the company did not specify the stock’s up or down movement in percentage, the guidance for the next quarter indicates a more conservative expectation compared to market estimates. Rogers’ focus remains on driving profitability and cash flow, as well as positioning for growth as demand strengthens, according to CEO Gouveia.
The company’s cash and cash equivalents ended the quarter at $116.9 million after a principal payment of $30.0 million on its revolving credit facility.
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