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Jun 30, 2022
inTEST Q2 2022 Earnings Report
Reported record revenue and strong earnings, driven by strong execution of 5-Point Strategy.
Key Takeaways
inTEST Corporation reported record revenue of $29.6 million for the second quarter of 2022, a 36% increase year-over-year. The company's success was attributed to the continued execution of its 5-Point Strategy, resulting in better-than-expected results and record orders and backlog.
Revenue increased by 36% year-over-year to a record $29.6 million, with 12% organic revenue growth.
GAAP earnings per diluted share was $0.20, and non-GAAP adjusted earnings per diluted share was $0.25, surpassing guidance.
Orders grew over 60% year-over-year, reflecting strong demand across end markets, and backlog expanded to a record $46 million.
Sales to the automotive industry quadrupled, with 57% related to the electric vehicle market.
Forward Guidance
inTEST continues to expect 2022 revenue to grow to approximately $110 million to $115 million. Third quarter 2022 revenue is expected to be in the range of $29 million to $31 million. Third quarter 2022 EPS (GAAP) is expected to be in the range of $0.20 to $0.25 while adjusted EPS (Non-GAAP) is expected to be in the range of $0.25 to $0.30.
Positive Outlook
- Expecting gross margin in the second half of 2022 to range between 46% to 48%.
- Quarterly operating expenses are now expected to run at approximately $10.8 million to $11.0 million.
- Intangible asset amortization, which is expected to be approximately $600,000 per quarter.
- Interest expense is expected to be approximately $150,000 per quarter.
- The effective tax rate is expected to be approximately 16% to 17% for the year.
Challenges Ahead
- Macroeconomic Environment
- Supply Chain Challenges
- Assumes supply chain challenges remain unchanged
Historical Earnings Impact
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Avg. Return Before/After Earnings
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