NYSE$INTT

inTEST Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

inTEST reported record revenue and net earnings growth in Q2 2023.

inTEST Corporation reported record revenue of $32.6 million for Q2 2023, a 10% increase year-over-year. Net earnings grew by 32% year-over-year to $2.8 million, with earnings per diluted share of $0.24, up 20% over the prior-year period. The company updated its full-year revenue guidance to $127 million to $131 million.

  • Revenue increased by 10% year-over-year, reaching the upper end of the guidance range.
  • Operating income grew by 22.6% year-over-year to $3.3 million, demonstrating strong operating leverage.
  • Net earnings increased by 32.0% to $2.8 million, with a net margin of 8.6%.
  • Orders were up 2% sequentially, driven by demand from industrial, defense/aerospace, automotive/EV, security and other markets.

Headline financials

Total Revenue

$32.6M

Previous: $29.6M+10.1%
EPS (adj)

$0.28

Previous: $0.25+12.0%
Gross Margin

46.3%

No prior period
Adjusted EBITDA Margin

14.7%

No prior period
Capital Expenditures

-$709K

Previous: -$708K-0.1%
Free Cash Flow

$2.08M

Previous: $1.41M+48.0%
Net Income

$2.79M

Previous: $2.12M+32.0%
Operating Income

$3.34M

Previous: $2.73M+22.6%
Gross Profit

$15M

Previous: $13.5M+10.9%
Cash & Equivalents

$37.4M

Previous: $10.5M+255.1%
Total Assets

$133M

Previous: $106M+25.3%
Stock-Based Comp

$605K

Previous: $551K+9.8%

Revenue & EPS history

inTEST · Revenue · Quarterly

$32.6M

Q2 2023+10.1%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

The company expects revenue for the third quarter of 2023 to be similar to the second quarter, with a gross margin of approximately 46%. Third quarter 2023 estimated EPS is expected to be in the range of $0.20 to $0.24, while third quarter estimated adjusted EPS (Non-GAAP) is expected to be in the range of $0.23 to $0.27. For the full year of 2023, the Company is updating its guidance as follows: Revenue $127 million to $131 million.

Tailwinds

  • Revenue for the third quarter of 2023 is expected to be similar to the second quarter.
  • Gross margin of approximately 46% is expected for the third quarter.
  • Operating expenses, including amortization, are expected to be similar to the second quarter.
  • The Company should benefit from interest income due to its higher cash balance which should mostly offset the increase in weighted average shares from the recently completed ATM.
  • Third quarter 2023 estimated EPS is expected to be in the range of $0.20 to $0.24.

Headwinds

  • Macroeconomic conditions remain unchanged through the end of the year
  • It does not take into account any extraordinary non-operating expenses that may occur from time to time.
  • Actual results may differ materially from what is provided here today as a result of, among other things, the factors described under “Forward-Looking Statements” below.
  • Changes in the market cycles in the semi market or other markets served
  • Changes in business conditions and general economic conditions both domestically and globally including rising interest rates and fluctuation in foreign currency exchange rates

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.2%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+0.1%

Avg return

30 days after

55%

35 / 64 earnings

Positive

+30.0%

Q4 2016

Best reaction

-26.2%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.8%+6.5%-10.3%
Q4 2025+17.7%+26.9%+40.4%
Q3 2025-2.6%-5.5%-9.0%
Q1 2025-6.1%+2.7%-2.7%
Q4 2024-4.1%-3.9%-27.1%
Q3 2024+0.1%+9.5%+5.7%
Q2 2024-26.2%-32.1%-28.7%
Q1 2024-4.9%-11.1%-15.2%
Q4 2023+21.3%+22.0%+7.0%
Q3 2023-8.3%-10.1%+0.8%
Q2 2023-11.5%-16.8%-14.8%
Q1 2023+11.9%+17.7%+18.8%
Q4 2022+2.6%+9.1%+40.9%
Q3 2022-7.1%-7.2%+14.6%
Q2 2022+10.8%+14.7%-1.2%
Q1 2022-18.3%-17.0%-9.2%
Q4 2021-18.9%-14.5%-4.8%
Q3 2021+19.3%+17.3%+9.7%
Q2 2021-21.4%-23.4%-15.4%
Q1 2021+1.6%-2.4%+21.5%
Q4 2020+9.0%+6.7%+8.0%
Q3 2020+6.3%-1.0%-1.6%
Q2 2020+2.5%+3.3%+2.6%
Q1 2020+0.6%-6.2%+15.8%
Q4 2019-7.3%-11.1%-51.0%
Q3 2019-1.7%-1.3%+10.5%
Q2 2019+5.1%+1.3%-7.3%
Q1 2019-21.6%-21.9%-26.9%
Q4 2018-2.7%-3.5%-7.4%
Q3 2018-3.9%-6.0%-5.4%
Q2 2018+9.0%+22.9%+21.5%
Q1 2018-4.0%+0.0%-2.6%
Q4 2017+10.2%+2.5%-15.5%
Q3 2017-4.7%+4.7%+5.3%
Q2 2017-16.0%-8.9%-10.1%
Q1 2017+4.3%+9.3%+17.3%
Q4 2016+30.0%+28.0%+24.0%
Q3 2016+3.3%+4.4%+11.0%
Q2 2016+3.3%+1.0%-4.8%
Q1 2016+1.6%
Q4 2015-4.0%
Q3 2015-0.5%
Q2 2015+1.7%
Q1 2015+6.6%
Q4 2014+4.6%
Q3 2014-0.7%
Q2 2014+8.2%
Q1 2014-3.1%
Q4 2013+0.7%
Q3 2013-3.0%
Q2 2013+2.8%
Q1 2013+3.8%
Q4 2012-5.1%
Q3 2012+0.0%
Q2 2012+1.9%
Q1 2012-2.0%
Q1 2011-2.0%
Q4 2011+1.4%
Q3 2010+1.7%
Q3 2011+1.7%
Q2 2010+7.1%
Q4 2010+7.1%
Q2 2011+7.1%
Q1 2010-4.3%

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