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Jun 30, 2020
Rogers Q2 2020 Earnings Report
Rogers Corporation delivered solid financial results driven by strong execution and favorable product mix, despite challenging market conditions due to the COVID-19 pandemic.
Key Takeaways
Rogers Corporation reported Q2 2020 net sales of $191 million, a 4% decrease from the previous quarter, but within the guidance range. The company's gross margin was 36.6%, and adjusted EPS was $1.13, exceeding guidance. Strong free cash flow of $39 million was generated, and the balance sheet remains strong.
Managed through a dynamic quarter to deliver solid Q2 results.
Maintained focus on cost improvement road map and took timely actions in response to the current environment, resulting in gross margin and earnings improvement.
Generated strong free cash flow, and the balance sheet remains healthy.
Focused on accelerating plans to take advantage of the significant opportunities in advanced mobility and pursuing opportunities in 5G technologies in advanced connectivity.
Revenue by Segment
Forward Guidance
For Q3 2020, Rogers expects revenue in the range of $175 million to $190 million and adjusted EPS in the range of $0.90 to $1.10 per share.
Positive Outlook
- Continued strength in defense for ACS
- Portable electronics market preparing to launch 5G handsets benefiting EMS
- Renewed strength in power semiconductors and laminated busbars for EV and HEV applications in PES with the resumption of manufacturing at a significant OEM
- Continued progress in the EV/HEV battery pad applications in EMS
- Supply chain will continue to supply critical materials
Challenges Ahead
- Demand slowdown in wireless infrastructure revenues
- Applications selling into the traditional automotive market will be down sequentially in the third quarter, even as signs of a broader automotive recovery become evident as many of our customers will work down inventory levels
- Have not seen many signs of a general industrial recovery early in the third quarter and expect revenues from these applications to be flat compared to the second quarter
Historical Earnings Impact
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Avg. Return Before/After Earnings
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