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Sep 30, 2022
inTEST Q3 2022 Earnings Report
Reported record revenue and net income growth year-over-year.
Key Takeaways
inTEST Corporation reported record revenue of $30.8 million for the third quarter of 2022, a 46% increase year-over-year. Net income grew by 16% to $2.5 million, with diluted EPS up 15% to $0.23. The company expects 2022 revenue at the higher end of the original range of $110 million to $115 million.
Achieved record revenue for the second consecutive quarter, up 46% year-over-year.
Organic revenue (non-GAAP) increased 23% year-over-year.
Orders grew 55% year-over-year to $32.7 million, driven by acquisitions and strength in analog/mixed signal test and silicon carbide (SiC) production markets.
Attained second consecutive quarter of record backlog at $47.9 million.
inTEST
inTEST
Forward Guidance
Fourth quarter 2022 financial results are expected to be comparable with third quarter results. Revenue is expected to be in the range of $30 million to $32 million with gross margin of approximately 45%.
Positive Outlook
- Revenue is expected to be in the range of $30 million to $32 million.
- Gross margin of approximately 45% is expected.
- Fourth quarter guidance implies that the Company expects to deliver revenue at the high end of its original guidance provided for the year of $110 million to $115 million.
- Fourth quarter 2022 EPS (GAAP) is expected to be in the range of $0.20 to $0.25
- Adjusted EPS (Non-GAAP) is expected to be in the range of $0.25 to $0.30.
Challenges Ahead
- Macroeconomic conditions remain unchanged through the end of the year.
- Fourth quarter operating expenses are expected to run at approximately $10.7 million to $10.9 million.
- This estimated level of quarterly expense includes intangible asset amortization, which is expected to be approximately $560,000 pre-tax, or approximately $465,000 after tax.
- Interest expense is expected to be approximately $190,000 for the quarter
- The effective tax rate is expected to be approximately 16% to 17% for the year.