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Mar 31, 2024
inTEST Q1 2024 Earnings Report
Reported a mix of positive and negative results, with revenue increase offset by margin contraction and order delays, while adjusting full year revenue expectation.
Key Takeaways
inTEST Corporation reported Q1 2024 revenue of $29.8 million, a 7% sequential increase driven by the Alfamation acquisition, but a year-over-year decline due to weakness in semiconductor sales. Earnings per diluted share was $0.05, while adjusted earnings per diluted share was $0.10. The company generated $2.1 million in cash from operations and holds a record backlog of $55.5 million.
Q1 2024 revenue reached $29.8 million, up 7% sequentially, including $1.4 million from Alfamation acquisition.
Earnings per diluted share was $0.05, with adjusted earnings per diluted share at $0.10.
Generated $2.1 million in cash from operations; cash at quarter-end was $27.3 million.
Record backlog of $55.5 million, including $22.8 million from Alfamation.
inTEST
inTEST
Forward Guidance
The company expects Q2 2024 revenue to be in the range of $34 million to $36 million with a gross margin of approximately 44% to 45%. Full year revenue is expected to be $140 million to $150 million.
Positive Outlook
- Second quarter revenue is expected to be in the range of $34 million to $36 million
- Gross margin for the second quarter is expected to be approximately 44% to 45%.
- Full year revenue expectation is $140 million to $150 million, representing 18% growth over 2023 at the mid-point.
- Operating expenses for the second quarter are expected to be $14.5 million to $15 million.
- Second quarter adjusted EPS is expected to be in the range of $0.10 to $0.16.
Challenges Ahead
- Approximately $5 million in expected orders were delayed or reduced by customers at the end of the quarter.
- The sequential decline in orders for the defense/aerospace and industrial markets were largely the result of tough comparators.
- Full year operating expenses are expected to be $56 million to $58 million.
- Intangible asset amortization expense is expected to be approximately $5 million.
- Effective tax rate is expected to be 17% to 19%.