Market Overview

CTS Corp Hits A New 52-Week Low Following Q4 Miss, 2016 Guidance


Shares of CTS Corporation (NYSE: CTS) were trading lower by more than 7 percent on Monday and hit a new 52-week low of $12.90 after the company reported its fourth quarter results.

CTS earned $0.20 per share in the fourth quarter on revenue of $93.3 million. Wall Street analysts were expecting the company to earn $0.25 per share on revenue of $99 million.

GAAP loss for the quarter totaled $13.7 million (or $0.42 per share) in the quarter compared to an earnings of $7.0 million (or $0.21 per share) in the same quarter a year ago. The company noted that its quarterly GAAP loss includes a discrete tax charge of $0.34 per share and restructuring related charges of $0.28 per share.

Sales for the full fiscal year fell 5.4 percent to $382.3 million as currency impacted total sales unfavorably by $7.8 million. Adjusted earnings per share for the full year also fell to $0.93 per share from $0.97 in 2014.

Looking forward to fiscal 2016, CTS guided its earnings per share to a range of $0.95 to $1.05 on revenue of $390 million to $400 million. Wall Street analysts were already estimating the company to earn $1.04 per share on revenue of $397.6 million.

"CTS had a challenging 2015, and we were disappointed with our revenue performance. However, we achieved a number of significant accomplishments during the year. We improved our gross margin. We also successfully completed the transition of manufacturing from our plant in Canada, added several new customers, and acquired new technology and IP as part of our strategic plans," said Kieran O'Sullivan, CEO of CTS Corporation. "We had a record year for new business awards with an increase of 16% year-over-year. We are building backlog and staying on course towards our long-term strategic growth objectives."


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Posted-In: CTS CTS Corp Kieran O’SullivanEarnings News Guidance Movers