In This Article:
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Revenue: $210 million, a 2% decline from the prior quarter.
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Gross Margin: 35.2%, exceeding expectations.
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Adjusted EPS: $0.98, surpassing guidance.
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Free Cash Flow: $25 million generated in Q3.
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Net Income: Adjusted net income increased to $18 million from $13 million in Q2.
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Cash Position: $146 million as of September 30, an increase of nearly $27 million from the prior quarter.
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Capital Expenditures: $41 million year to date, with $17 million in Q3.
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Q4 Revenue Guidance: Expected to range between $185 million and $200 million.
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Q4 Gross Margin Guidance: Projected to be between 31.5% and 33%.
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Q4 Adjusted EPS Guidance: Expected to range from $0.30 to $0.60.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Rogers Corp (NYSE:ROG) exceeded earnings expectations with a gross margin of 35.2%, surpassing the high end of their forecast.
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The company generated $25 million in free cash flow during the quarter, highlighting strong cash management.
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Rogers Corp (NYSE:ROG) is making strategic investments in new manufacturing facilities in China to support future growth, particularly in the EV/HEV market.
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The company secured significant design wins in the EV/HEV sector, including a new AMB power substrate technology for a leading Asian OEM.
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Rogers Corp (NYSE:ROG) is focused on long-term growth opportunities in emerging markets such as AI data centers, battery energy storage systems, and medical devices.
Negative Points
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Revenues for Q3 were below expectations, primarily due to softer order patterns in the EV/HEV segment and a lower seasonal peak in portable electronics.
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The company is facing ongoing contraction in global manufacturing activity, impacting its industrial and automotive markets.
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Rogers Corp (NYSE:ROG) anticipates a sequential decline in Q4 revenues due to lower wireless infrastructure demand and typical seasonal declines in portable electronics.
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The company is experiencing competitive pressures in the ADAS market, leading to a decline in sales.
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Operating expenses are expected to increase in Q4 due to higher start-up costs associated with new manufacturing facilities.
Q & A Highlights
Q: Can you explain the primary reasons for the sequential decline in revenue implied in the Q4 guidance? A: The decline is mainly due to the conclusion of a wireless program in Q3 and the typical seasonal decline in portable electronics. Additionally, there is no expected recovery in the curamik power module space, and customers are likely to destock inventory by year-end to meet cash targets. - R. Colin Gouveia, President, CEO