ROG Earnings Prediction
The chart below shows how ROG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ROG sees a +2.75% change in stock price 10 days leading up to the earnings, and a -1.01% change 10 days following the report. On the earnings day itself, the stock moves by -0.77%. This data can give you a slight idea of what to expect for the next quarter's release.
ROG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
192.20M
-6.05%
-8.61%
Gross Margin
32.10%
-2.61%
-8.91%
Operating Margin
1.93%
-86.46%
-80.58%
Net Margin
-0.26%
-102.29%
-105.11%
EPS
-0.03
-102.44%
-105.17%
No Data Available
ROG Earnings Analysis
Rogers Corp Corporation (ROG.N) Earnings Conference Call
Positive
Quarterly Performance Overview: Fourth quarter results were in line with expectations, with sales, gross margin, and adjusted earnings near the midpoint of guidance ranges.
Commercial Innovation Progress: Despite market headwinds, Rogers made solid progress on commercial innovation and operational excellence initiatives, securing new design wins across key end markets.
Strong Free Cash Flow: The company generated robust free cash flow of $71 million in 2024, maintaining similar levels to the prior year, demonstrating effective cost management and operational efficiency.
ADAS Design Wins: Rogers achieved significant design wins in the ADAS space, including a contract with a leading Asian automotive radar supplier, showcasing the strength of their laminate materials.
Aerospace and Defense Growth: The Aerospace and Defense segment delivered solid growth for the second consecutive quarter, driven by higher commercial aerospace demand and double-digit growth for the full year.
Local Manufacturing Strategy: Rogers successfully executed a local-for-local manufacturing strategy, adding new facilities in China to support growth and improve operational flexibility.
Product Innovation Launch: The company launched new advanced products, including a thermoset laminate for ADAS applications and new technology for the semiconductor market, indicating a strong innovation pipeline.
Strong Balance Sheet Advantage: Rogers has a pristine balance sheet with no debt, allowing for continued investment in organic growth and potential M&A opportunities.
Negative
Sales Decline Analysis: Fourth quarter sales declined 9% from the prior quarter, attributed to challenging market conditions and normal seasonality.
Market Headwinds Impacting Growth: Significant market headwinds were experienced in 2024, particularly in industrial and EV/HEV markets, with global growth rates in the EV/HEV market falling to half the level of the prior year.
Sales Decline Due to Destocking: Curamik power substrate sales dropped significantly, being the largest reason for lower 2024 sales, due to inventory destocking among customers.
Cautious Customer Ordering: Customers are ordering cautiously, leading to a relatively flat sales outlook for the first quarter of 2025.
Gross Margin Decline: Fourth quarter gross margin decreased by 310 basis points from the third quarter, primarily due to lower volume and unfavorable product mix.
Adjusted Net Income Decline: Adjusted net income decreased to $9 million in the fourth quarter from $18 million in Q3, primarily due to lower gross margin and higher operating expenses.
Operating Expenses Surge: Operating expenses increased to $67 million in Q4, driven by higher severance costs related to a global workforce reduction and incremental factory start-up expenses.
ERP System Impairment: An $8 million impairment related to the ERP system was incurred in Q4, indicating challenges in the implementation process.
Sales Decline Forecast: Q1 2025 sales are expected to decline by about 2% from Q4 sales, with gross margin projected to be in the range of 29% to 30.5%, reflecting lower volume and unfavorable product mix.
ROG FAQs
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ROG Earning Call Sentiment
Rogers Corporation (NYSE:ROG) Q4 2024 Earnings Call Transcript
ROG.N
7.89%Positive
The earnings call summary shows several negative factors: revenue decline, margin contraction, and operational challenges. Despite some positive long-term outlooks, short-term guidance is weak, with flat sales expected in Q1 2025. The Q&A reveals cautious customer behavior and management's unclear responses on growth timelines and geopolitical impacts, furthering negative sentiment. The market cap suggests a moderate reaction, leading to a predicted stock price decline of -2% to -8% over the next two weeks.
