inTEST Q2 2023 Earnings Report
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.
inTEST
inTEST
inTEST 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.
- Actual results may differ materially from what is provided here today as a result of, among other things, the factors described under “Forward-Looking Statements” below.
- Changes in the market cycles in the semi market or other markets served
- Changes in business conditions and general economic conditions both domestically and globally including rising interest rates and fluctuation in foreign currency exchange rates
Revenue & Expenses
Visualization of income flow from segment revenue to net income