NEW YORK - Rogers Corporation (NYSE:ROG) reported mixed third-quarter results, with earnings surpassing expectations but revenue falling short. The company's weak fourth-quarter guidance sent its stock down 4% in after-hours trading.
The advanced materials and components manufacturer posted adjusted earnings per share of $0.98 for Q3, beating the analyst estimate of $0.85. However, revenue came in at $210.3 million, below the consensus estimate of $220.1 million and down 1.8% from the previous quarter.
Rogers' Q3 sales were impacted by softer demand in the electric vehicle (EV) and hybrid electric vehicle (HEV) markets, as well as a lower seasonal peak in portable electronics sales. The company's Advanced Electronics Solutions (AES (NYSE:AES)) unit saw a 2.9% decrease in net sales, while the Elastomeric Material Solutions (EMS) unit experienced a 0.5% decline.
Despite the revenue miss, Rogers managed to improve its gross margin to 35.2% from 34.1% in the prior quarter, primarily due to favorable product mix. The company also reduced its selling, general and administrative expenses by $5.8 million compared to the previous quarter.
Looking ahead, Rogers provided disappointing guidance for the fourth quarter, projecting earnings per share between $0.30 and $0.60, well below the analyst consensus of $0.83. The company expects sales to decline due to typical seasonality and deferred ordering as customers manage year-end inventory levels.
Colin Gouveia, Rogers' President and CEO, commented, "We continue to execute our focused strategy to position Rogers for the long-term, as highlighted by the ribbon-cutting ceremony at our new power substrate factory in China, which is targeted to growth opportunities in the EV/HEV, renewable energy, and industrial markets."
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