Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Q1 guidance implies a 12% revenue decline year-over-year at the midpoint. How should we think about revenue on a segment basis, as well as an end market basis for Q1 relative to Q4? And what end markets are you experiencing further sequential softness in? A: Colin Gouveia, President and CEO, explained that the sequential decrease is primarily related to Portable Electronics, which typically sees its highest revenue in Q3, decreasing in Q4, and reaching a low point in Q1. Year-over-year, the decline is mainly due to the curamik business, which faced significant inventory and EV/HEV market slowdowns in 2024.
Q: Given the implied year-over-year decline in Q1, do you expect to get back to positive top-line growth on a year-over-year basis by the second half of '25? Are there further cost reduction actions planned to protect margins and cash flow? A: Colin Gouveia stated that Q1 is expected to be the low point, with a stronger second half anticipated. The curamik market is expected to gradually recover, and new manufacturing capabilities in China will support growth. Laura Russell, CFO, added that margin recovery is expected as volumes improve, driven by customer demand recovery.
Q: Can you provide insights into the Aerospace & Defense (A&D) business, which has been characterized as a high-growth area? Is the improvement quarter-to-quarter or a base lift? A: Colin Gouveia noted that A&D is a core business, with aerospace and defense segments showing solid growth. The business is expected to continue growing at a mid-single-digit rate in the near, medium, and long term.
Q: How is Rogers Corp managing geopolitical uncertainties, particularly tariffs, and what impact do they have on your operations? A: Colin Gouveia explained that the company is closely monitoring the dynamic tariff situation. The local-for-local manufacturing strategy allows Rogers to produce and supply products within key regions, mitigating potential tariff impacts. The company feels strategically positioned to handle any tariff changes.
Q: Is the hesitance in the market due to geopolitical uncertainties affecting Rogers directly, or is it more downstream in the supply chain? A: Colin Gouveia indicated that the hesitance is largely due to macroeconomic uncertainties, with customers being cautious about inventory and economic conditions. As geopolitical issues and macroeconomic conditions stabilize, a more reasonable order cadence and economic confidence are expected to return.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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