CTS Corp Q3 sales edge past estimates on transportation segment growth

Overview

• US sensor and component maker's Q3 sales rose 5%, slightly beating analyst expectations

• Adjusted EPS for Q3 beat consensus

• Company raised 2026 sales and adjusted EPS guidance

Outlook

• CTS raises 2026 sales guidance to $580-$590 mln from $565-$585 mln

• Company lifts 2026 adjusted diluted EPS outlook to $2.78-$2.88 from $2.55-$2.70

Result Drivers

• DIVERSIFIED END-MARKETS - Co said sales to diversified end-markets grew 7% and now represent 60% of total sales

• TRANSPORTATION SALES - Co said transportation sales posted modest growth, up 2% from prior yr

• ACQUISITION IMPACT - Co said Millar acquisition advanced diversification strategy, especially in medical end market

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy."

• Wall Street's median 12-month price target for CTS Corp is $67.00, about 24.3% above its October 26 closing price of $53.92

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 25 three months ago

Reuters Recommended Reads

• Oct 27 - Hubbell Inc beats Q3 revenue on Electrical Solutions growth, raises FY outlook

• Oct 27 - Lincoln Electric Q3 sales beat on higher volumes

• Oct 27 - Westcott scissors maker Acme United Q3 net sales rise 18% on broad-based growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)