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Jun 30, 2023
inTEST Q2 2023 Earnings Report
inTEST reported record revenue and net earnings growth in Q2 2023.
Key Takeaways
inTEST Corporation reported record revenue of $32.6 million for Q2 2023, a 10% increase year-over-year. Net earnings grew by 32% year-over-year to $2.8 million, with earnings per diluted share of $0.24, up 20% over the prior-year period. The company updated its full-year revenue guidance to $127 million to $131 million.
Revenue increased by 10% year-over-year, reaching the upper end of the guidance range.
Operating income grew by 22.6% year-over-year to $3.3 million, demonstrating strong operating leverage.
Net earnings increased by 32.0% to $2.8 million, with a net margin of 8.6%.
Orders were up 2% sequentially, driven by demand from industrial, defense/aerospace, automotive/EV, security and other markets.
Revenue by Geographic Location
Forward Guidance
The company expects revenue for the third quarter of 2023 to be similar to the second quarter, with a gross margin of approximately 46%. Third quarter 2023 estimated EPS is expected to be in the range of $0.20 to $0.24, while third quarter estimated adjusted EPS (Non-GAAP) is expected to be in the range of $0.23 to $0.27. For the full year of 2023, the Company is updating its guidance as follows: Revenue $127 million to $131 million.
Positive Outlook
- Revenue for the third quarter of 2023 is expected to be similar to the second quarter.
- Gross margin of approximately 46% is expected for the third quarter.
- Operating expenses, including amortization, are expected to be similar to the second quarter.
- The Company should benefit from interest income due to its higher cash balance which should mostly offset the increase in weighted average shares from the recently completed ATM.
- Third quarter 2023 estimated EPS is expected to be in the range of $0.20 to $0.24.
Challenges Ahead
- Macroeconomic conditions remain unchanged through the end of the year
- It does not take into account any extraordinary non-operating expenses that may occur from time to time.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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