The following is a summary of the CTS Corporation (CTS) Q1 2024 Earnings Call Transcript:
Financial Performance:
CTS Corporation reported a Q1 2024 revenue of $126 million, showing a decrease of 14% as compared to Q1 2023.
The company saw a decrease in its transportation sales by 10%, whereas non-transportation sales also declined by 17% compared to the same period last year.
There was an increase of 86 basis points in adjusted gross margins to 36.2%, mostly due to operational improvements and an increased focus on non-transportation sales.
Adjusted diluted earnings per share saw a decrease to $0.47 from the previous year's $0.61.
Business Progress:
CTS Corporation's book-to-bill ratio saw an improvement to 1.07, indicating a potential recovery in the industrial end market.
Q1 2024 marked the addition of several new customers and successful projects in therapeutic ultrasound and blood analysis sectors.
Despite a slight decrease in defense sales, the company anticipates solid long-term prospects for the aerospace and defense end market.
In the transportation sector, CTS Corporation secured new product victories and added a new EV customer, with a shift in focus towards electrification.
For the full year 2024, CTS anticipates their sales to range between $530 million to $570 million, and adjusted diluted earnings per share between $2.10 to $2.35.
Plans for future growth are expected to be driven by an increase in automation, connectivity, energy efficiency, and medical innovation.
More details: CTS Corp IR
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