CTS Corp. (CTS) Tops Q2 EPS by 4c, Beats on Revenues; Boosts FY18 EPS/Revenue Guidance Above Consensus

CTS Corp. (NYSE: CTS) reported Q2 EPS of $0.39, $0.04 better than the analyst estimate of $0.35. Revenue for the quarter came in at $118 million versus the consensus estimate of $112.03 million.

• Sales were $118.0 million, up 11.7% year-over-year, with organic growth at 10.9%. Sales to transportation customers increased 7.5%, and sales of electronic components increased 19.3%.
• Net earnings were $7.2 million or $0.21 per diluted share, down from $10.0 million or $0.30 per diluted share in the second quarter of 2017, impacted by currency changes and certain discrete tax items.
• Adjusted EPS was $0.39 per diluted share, up from $0.28 in the second quarter of 2017.
• Total Booked Business was $1.8 billion at the end of the second quarter of 2018, an increase of $38 million from the first quarter of 2018.

“We delivered another quarter of strong sales growth and improved operational performance,” said Kieran O’Sullivan, CEO of CTS Corporation. “Our sales to industrial, medical, and aerospace & defense customers grew by double digits, and we saw robust sales growth to our transportation customers. Our gross margins improved as we realized savings from our manufacturing transition. I am encouraged by our progress in the first half of the year.”

2018 Guidance

Management is increasing its full year guidance. 2018 sales are expected to be in the range of $450 to $465 million, up from $435 to $455 million. Adjusted earnings per diluted share for 2018 are expected to be in the range of $1.40 to $1.55, increased from $1.32 to $1.44.

GUIDANCE:

CTS Corp. sees FY2018 EPS of $1.40-$1.55, versus the consensus of $1.39. CTS Corp. sees FY2018 revenue of $450-465 million, versus the consensus of $452.7 million.

For earnings history and earnings-related data on CTS Corp. (CTS) click here.

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