M-tron Industries, Inc. MPTI or MtronPTI, reported impressive results for the third quarter of 2024. The top and bottom lines surpassed the Zacks Consensus Estimate and increased from the year-ago period.

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Shares of this designer and manufacturer of highly-engineered electronic components and solutions provider gained 4.2% in the after-hours trading session on Wednesday. Investors’ sentiments might have been boosted after MPTI noted that it anticipates a strong performance in the fourth quarter and expects to exceed its prior guidance for 2024.

Inside the MPTI Headline Numbers

M-tron Industries reported adjusted earnings per share (EPS) of 81 cents, which surpassed the consensus estimate of 54 cents by 50%. The reported figure increased 42.1% from 57 cents reported in the year-ago quarter. The upside was backed by continued strong defense program product and solution shipments.

M-tron Industries, Inc. Price, Consensus and EPS Surprise

M-tron Industries, Inc. price-consensus-eps-surprise-chart | M-tron Industries, Inc. Quote

Quarterly revenues of $13.2 million beat the consensus mark of $12.2 million by 8.3%. The reported figure increased 21.4% from the year-ago quarter’s $10.9 million, driven by solid defense-related orders.

MPTI’s Margins & Backlog Discussion

Gross margin was 47.8%, up 500 basis points (bps) from 42.8% a year ago. The increase was primarily due to higher revenues, improved production efficiencies from previous investments, and an improved product mix of higher-margin products.

Adjusted EBITDA was $3.3 million, which increased 41.3% from $23.4 million reported in the year-ago quarter backed by improved gross margins and continued cost containment efforts. Adjusted EBITDA margin was 25%, up 350 bps from 21.5% a year ago.

As of Sept. 30, the total backlog was $39.76 million compared with $47.83 million at 2023-end and $50.28 million a year ago. The decrease in backlog reflects the continued strategy and focus on securing large, long-duration program-centric businesses.

MtronPTI’s Financial Details

As of Sept. 30, 2024, MtronPTI had cash and cash equivalents of $8.49 million compared with $3.91 million at the end of 2023. Inventories were $9.55 million compared with $8.88 million at 2023-end.

Outlook

With the continued momentum in defense-related sales and the acceleration in production and shipments in the first half of 2024, MPTI expects to exceed the prior guidance for 2024.

The company expects revenues to be within $46-$48 million in 2024 from the previous year's number of $41.17 million. It expects adjusted EBITDA margin in the range of 19-21%.

Zacks Rank

MtronPTI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

Fluor Corporation FLR reported third-quarter 2024 adjusted EPS of 51 cents, which missed the Zacks Consensus Estimate of 78 cents by 34.6%. The reported figure decreased 50% from an EPS of $1.02 a year ago.

Fluor’s quarterly revenues of $4.09 billion missed the consensus mark of $4.79 billion by 14.6%. The figure grew 3.3% from the year-ago quarter’s level of $3.96 billion.

KBR, Inc. KBR reported mixed third-quarter fiscal 2024 results, with adjusted earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.

KBR’s quarterly results were backed by the benefits realized from the LinQuest acquisition and solid contributions from both the reportable businesses, given the increased demand trends for its services. Although high costs and expenses were headwinds, leverage from the increased top line aided the uptick.

Quanta Services Inc. PWR reported mixed results for the third quarter of 2024, wherein adjusted earnings beat the Zacks Consensus Estimate, but revenues missed the same.

Quanta reported a strong quarter with double-digit growth across key financial metrics, a record backlog of $34 billion and $539.5 million in free cash flow. CEO Duke Austin attributed this growth to Quanta’s diverse portfolio, high demand, effective execution and an expanding market.

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