NYSE$ROG

Rogers Corporation · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Rogers Corporation delivered solid financial results driven by strong execution and favorable product mix, despite challenging market conditions due to the COVID-19 pandemic.

Rogers Corporation reported Q2 2020 net sales of $191 million, a 4% decrease from the previous quarter, but within the guidance range. The company's gross margin was 36.6%, and adjusted EPS was $1.13, exceeding guidance. Strong free cash flow of $39 million was generated, and the balance sheet remains strong.

  • Managed through a dynamic quarter to deliver solid Q2 results.
  • Maintained focus on cost improvement road map and took timely actions in response to the current environment, resulting in gross margin and earnings improvement.
  • Generated strong free cash flow, and the balance sheet remains healthy.
  • Focused on accelerating plans to take advantage of the significant opportunities in advanced mobility and pursuing opportunities in 5G technologies in advanced connectivity.

Headline financials

Total Revenue

$191M

Previous: $243M-21.3%
EPS (adj)

$1.13

Previous: $1.64-31.1%
Capital Expenditures

-$18.2M

Previous: -$24M+24.5%
Free Cash Flow

-$3.63M

Previous: $267K-1459.6%
Net Income

$14.5M

Previous: $24.3M-40.2%
Operating Income

$21.1M

Previous: $33.2M-36.5%
Gross Profit

$70M

Previous: $85.8M-18.5%
Cash & Equivalents

$299M

Previous: $173M+72.6%
Total Assets

$1.4B

Previous: $1.31B+7.1%
Stock-Based Comp

$3.9M

Previous: $3.67M+6.2%

Revenue & EPS history

Rogers · Revenue · Quarterly

$191M

Q2 2020-21.3%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

For Q3 2020, Rogers expects revenue in the range of $175 million to $190 million and adjusted EPS in the range of $0.90 to $1.10 per share.

Tailwinds

  • Continued strength in defense for ACS
  • Portable electronics market preparing to launch 5G handsets benefiting EMS
  • Renewed strength in power semiconductors and laminated busbars for EV and HEV applications in PES with the resumption of manufacturing at a significant OEM
  • Continued progress in the EV/HEV battery pad applications in EMS
  • Supply chain will continue to supply critical materials

Headwinds

  • Demand slowdown in wireless infrastructure revenues
  • Applications selling into the traditional automotive market will be down sequentially in the third quarter, even as signs of a broader automotive recovery become evident as many of our customers will work down inventory levels
  • Have not seen many signs of a general industrial recovery early in the third quarter and expect revenues from these applications to be flat compared to the second quarter
  • An unfavorable product mix and lower volumes will negatively impact our gross margins in Q3
  • Continue to produce and deliver products for our customers with minimal disruptions from the coronavirus pandemic

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+2.5%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+1.8%

Avg return

30 days after

54%

35 / 65 earnings

Positive

+29.6%

Q3 2021

Best reaction

-14.7%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.2%+4.2%+9.3%
Q4 2025+3.9%+3.0%-4.4%
Q3 2025+5.8%-1.5%+0.3%
Q1 2025+4.0%+4.9%+12.0%
Q4 2024-0.3%-4.7%-19.6%
Q3 2024+0.7%+2.9%+5.3%
Q2 2024-2.1%-2.7%-14.2%
Q1 2024+11.0%+9.2%+7.0%
Q4 2023-3.9%-6.6%-0.8%
Q3 2023+1.5%+4.3%+13.2%
Q2 2023-5.0%-6.3%-8.4%
Q1 2023+4.1%+3.0%+4.0%
Q4 2022+4.2%+6.2%+9.7%
Q3 2022-2.7%-0.8%+13.8%
Q2 2022-0.3%-0.2%-3.6%
Q1 2022-0.7%-0.2%-2.7%
Q4 2021-0.2%+0.2%-0.1%
Q3 2021+29.6%+29.4%+30.1%
Q2 2021-5.2%-5.4%+4.7%
Q1 2021+2.6%-1.7%-1.9%
Q4 2020+6.5%+5.7%+13.5%
Q3 2020+20.0%+16.5%+49.0%
Q2 2020-11.1%-10.1%-14.2%
Q1 2020-6.5%-8.3%-6.5%
Q4 2019-1.3%+4.9%-27.6%
Q3 2019-11.7%-4.5%-15.3%
Q2 2019-6.8%-15.1%-19.5%
Q1 2019+15.4%+17.4%-15.6%
Q4 2018+15.3%+14.8%+11.9%
Q3 2018+4.0%-0.3%+4.6%
Q2 2018-0.4%+3.9%+12.8%
Q1 2018-3.1%-5.2%+1.3%
Q4 2017-14.7%-17.9%-25.8%
Q3 2017+0.5%-3.6%+4.1%
Q2 2017+5.1%+2.9%+2.1%
Q1 2017+14.9%+18.5%+21.8%
Q4 2016+9.8%+7.0%+5.2%
Q3 2016+16.5%+26.0%+32.4%
Q2 2016-14.7%-17.8%-16.3%
Q1 2016+11.2%
Q4 2015+13.2%
Q3 2015-2.1%
Q2 2015+6.3%
Q1 2015-7.2%
Q4 2014-1.6%
Q3 2014+19.4%
Q2 2014-2.0%
Q1 2014+3.6%
Q4 2013+4.7%
Q3 2013+5.3%
Q2 2013+6.0%
Q1 2013-1.8%
Q4 2012-1.6%
Q3 2012+11.5%
Q2 2012+12.0%
Q1 2011+5.7%
Q1 2012+2.1%
Q4 2009-5.0%
Q4 2011-5.0%
Q3 2011-6.5%
Q3 2010-6.5%
Q2 2010+8.1%
Q2 2011+8.1%
Q4 2010+8.1%
Q1 2010-6.5%

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