Shares of CTS saw a significant increase on Tuesday following the company's announcement of higher-than-expected earnings in the latest quarter and a positive outlook for the year.
Impressive Financial Performance
For the fourth quarter, CTS reported a net profit of $15.3 million, or 49 cents per share, compared to $14.9 million, or 47 cents per share, for the same period in the previous year. This surpassed analysts' expectations of 45 cents per share, as reported by FactSet.
Despite a 12% decrease in sales to $124.7 million, CTS managed to slightly exceed analysts' predictions of $124.5 million. Chief Executive Kieran O'Sullivan expressed satisfaction with these results, stating, "We continued to win new customers and applications in the non-transportation end markets that will support our long-term goal to further diversify and strengthen our business."
Positive Outlook for 2024
CTS also provided a positive outlook for 2024, guiding for sales between $530 million and $570 million, with adjusted earnings per share ranging from $2.10 to $2.35. While Wall Street's expectation for full-year sales was $550.4 million, and adjusted earnings per share were forecasted at $2.29, CTS remains confident in its ability to deliver strong financial performance.
Stock Repurchase Program
In addition to its optimistic outlook, CTS announced a common stock repurchase program of up to $100 million. This decision reflects the company's belief in the long-term value of its stock and its commitment to delivering value to shareholders.
Overall, CTS continues to make strides in diversifying and strengthening its business, while exceeding market expectations and maintaining a positive outlook for the future.