CTS Beats On Q2 Earnings, Expands Margins, Raises FY21 Guidance

CTS Beats On Q2 Earnings, Expands Margins, Raises FY21 Guidance
  • CTS Corp CTS reported second-quarter FY21 sales growth of 54% year-on-year to $129.6 million, beating the analyst consensus of $121.9 million. The Sensor Scientific acquisition added $1.6 million of sales.
  • Sales to transportation customers increased 88% Y/Y, and other end markets grew 26% Y/Y.
  • New business wins were $174 million.
  • The gross margin expanded 525 basis points to 36.8%, and the operating margin expanded 847 basis points to 15.9%.
  • Adjusted EPS of $0.52 beat the analyst consensus of $0.38.
  • CTS generated $18.7 million in operating cash flow and held $117.4 million in cash and equivalents.
  • It continues to advance diversification strategy by growing in the industrial, medical, and aerospace and defense end markets, enhanced by more substantial new business wins in a challenging supply chain environment.
  • Outlook: The company raised FY21 sales guidance from $445 million– $500 million to $480 million – $500 million compared to the analyst consensus of $490.3 million.
  •  It increased the adjusted EPS from $1.35 – $1.70 to $1.70 – $1.90 above the analyst consensus of $1.56.
  • Price action: CTS shares closed lower by 0.24% at $33.96 on Monday.

Posted In: BriefsEarningsNewsGuidanceSmall CapTech