Sep 30, 2024

inTEST Q3 2024 Earnings Report

Achieved strong gross margin and order growth

Key Takeaways

inTEST Corporation reported a solid third quarter with revenue of $30.3 million, gross margin of 46.3%, and earnings per diluted share of $0.04. The company generated $4.2 million in cash from operations, paid down $5.3 million in debt, and repurchased $1 million in shares.

Gross margin expanded 570 basis points compared with the second quarter 2024, reaching 46.3% despite a $3.7 million decrease in revenue.

Operating income increased sequentially by $0.2 million, and the operating margin expanded by 60 basis points due to improved mix, cost actions, and operational execution.

Orders grew 5% year-over-year and 7% sequentially to $28.1 million, with Alfamation orders improving 21% sequentially.

Earnings per diluted share was $0.04, while adjusted earnings per diluted share was $0.10.

Total Revenue
$30.3M
Previous year: $32.7M
-7.3%
EPS
$0.1
Previous year: $0.28
-64.3%
Gross Profit
$14M
Previous year: $15.3M
-8.7%
Cash and Equivalents
$18M
Previous year: $41.7M
-56.8%
Free Cash Flow
$3.74M
Previous year: $7.18M
-47.9%
Total Assets
$158M
Previous year: $135M
+17.7%

inTEST

inTEST

Forward Guidance

The Company has tightened the overall range of its expectations for the full year and is providing its fourth quarter financial guidance.

Positive Outlook

  • Revenue is expected to be between $34 million and $37 million.
  • Gross margin is expected to be approximately 42%.
  • Operating expenses are expected to be approximately $13.5 million.
  • Intangible asset amortization expense is expected to be approximately $0.9 million.
  • Intangible asset amortization expense after tax is expected to be approximately $0.7 million.