CTS Earnings: Here’s Why Investors Like These Results

CTS Corporation (NYSE:CTS) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 4.37%.

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CTS Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 100% to $0.14 in the quarter versus EPS of $0.07 in the year-earlier quarter.

Revenue: Rose 1.73% to $149.51 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CTS Corporation reported adjusted EPS income of $0.14 per share. By that measure, the company missed the mean analyst estimate of $0.14. It missed the average revenue estimate of $165.6 million.

Quoting Management: Commenting on first quarter 2013 results, Kieran O’Sullivan, CTS President and Chief Executive Officer, stated, “We stayed on track in the first quarter for our full-year profitability, despite softness in our EMS business and the mixed global economic conditions. We recognize we have work to do to simplify our business, optimize our capital utilization while improving our margins and completing the integration of our D&R operations.”

Key Stats (on next page)…

Revenue increased 8.11% from $138.3 million in the previous quarter. EPS decreased 22.22% from $0.18 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.24 to a profit $0.2. For the current year, the average estimate has moved down from a profit of $0.84 to a profit of $0.77 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)