Improved Operating Margin Drives Further Earnings Growth
CHANDLER, Ariz. — (BUSINESS WIRE) — October 24, 2024 — Rogers Corporation (NYSE: ROG) today announced financial results for the third quarter of 2024.
"Third-quarter results were mixed with earnings that exceeded our guidance expectations and sales that were below the low end of our outlook,” stated Colin Gouveia, Rogers' President and CEO. "The higher earnings resulted from our ongoing focus on operational improvements, improved product mix, and careful expense management. Sales for the quarter were lower than expected due to softer EV/HEV demand and a lower seasonal peak in portable electronics sales. Looking ahead to the fourth quarter, we expect sales to decline due to typical seasonality and deferred ordering as customers manage year-end inventory levels. We continue to execute our focused strategy to position Rogers for the long-term, as highlighted by the ribbon-cutting ceremony at our new power substrate factory in China, which is targeted to growth opportunities in the EV/HEV, renewable energy, and industrial markets."
Financial Overview
GAAP Results (dollars in millions, except per share amounts) |
Q3 2024 |
Q2 2024 |
Q3 2023 |
Net Sales |
$210.3 |
$214.2 |
$229.1 |
Gross Margin |
35.2% |
34.1% |
35.1% |
Operating Margin |
6.9% |
5.3% |
11.8% |
Net Income |
$10.7 |
$8.1 |
$19.0 |
Net Income Margin |
5.1% |
3.8% |
8.3% |
Diluted Earnings Per Share |
$0.58 |
$0.44 |
$1.02 |
Net Cash Provided by Operating Activities |
$42.4 |
$22.9 |
$42.0 |
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Non-GAAP Results1 (dollars in millions, except per share amounts) |
Q3 2024 |
Q2 2024 |
Q3 2023 |
Adjusted Operating Margin |
11.7% |
8.2% |
14.3% |
Adjusted Net Income |
$18.2 |
$12.8 |
$23.2 |
Adjusted Earnings Per Diluted Share |
$0.98 |
$0.69 |
$1.24 |
Adjusted EBITDA |
$35.2 |
$31.9 |
$45.4 |
Adjusted EBITDA Margin |
16.7% |
14.9% |
19.8% |
Free Cash Flow |
$25.2 |
$8.8 |
$35.3 |
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| Net Sales by Operating Segment (dollars in millions) |
Q3 2024 |
Q2 2024 |
Q3 2023 |
| Advanced Electronics Solutions (AES) |
$112.2 |
$115.5 |
$126.3 |
| Elastomeric Material Solutions (EMS) |
$94.2 |
$94.7 |
$98.0 |
| Other |
$3.9 |
$4.0 |
$4.8 |
| 1 - A reconciliation of GAAP to non-GAAP measures is provided in the schedules included below |
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