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M-tron Industries(MPTI) - 2024 Q3 - Earnings Call Transcript
2024-11-14 18:07
Financial Data and Key Metrics Changes - Total revenues for Q3 2024 were $13.2 million, a 21.4% increase compared to the same period last year, primarily driven by strong defense program product shipments [10] - Gross margins improved to 47.8%, a 500 basis point increase from 42.8% in Q3 2023, due to higher revenues and improved efficiencies [11] - Net income per diluted share rose to $0.81, a 42.1% increase from $0.57 in Q3 2023 [12] - Adjusted EBITDA for Q3 2024 was $3.3 million, reflecting a 41.4% increase from $2.3 million in Q3 2023 [12] - Backlog at the end of Q3 2024 was $39.7 million, down from $50.3 million as of September 30, 2023, indicating a shift in strategy towards securing large, long-duration contracts [14] Business Line Data and Key Metrics Changes - The company reported continued strength in sales, particularly in defense-related orders, which have been a significant driver of revenue growth [9][10] - Strategic investments in research and development have been maintained to support future growth while achieving superior earnings per share [9] Market Data and Key Metrics Changes - The primary markets for the company include defense and aerospace, commercial avionics, industrial, and space, with a notable performance in defense-related sales [8][9] - The company is focusing on high-growth markets such as space and satellite, drones, radar, and electronic warfare [18] Company Strategy and Development Direction - The company aims to move into more program business, maintaining close relationships with customers for upgrades and new system designs [17] - There is a focus on complementary acquisition opportunities in the RF components and subsystem space to enhance market position [19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in continued robust spending in the defense sector under the new administration, with no significant negative impacts anticipated [26] - The revenue outlook for 2024 has been raised to a range of $46 million to $48 million, up from the previous range of $43 million to $45 million, with expectations to exceed this guidance [16] Other Important Information - The company welcomed Cameron Pforr as the new Chief Financial Officer, emphasizing the importance of data-driven financial guidance for strategic direction [21][22] Q&A Session Summary Question: Clarification on EBITDA guidance for the full year - Management indicated that the EBITDA guidance of 19% to 21% is accurate, despite expectations of finishing the year strong [24] Question: Tax rate considerations for future modeling - The tax rate in Q3 was higher than normal, and management suggested that this rate is likely to be consistent going forward [25] Question: Operating environment under the new administration - Management expressed confidence in continued defense spending and did not foresee significant impacts from the new administration [26] Question: Backlog expectations for the next year - Management expects to exit the year with a backlog around the $50 million mark, contingent on the timing of large program-related orders [28] Question: Current M&A environment - Management described the M&A environment as fully valued, with a focus on finding complementary and accretive acquisition opportunities [30][31]
M-tron Industries, Inc. (MPTI) Q3 Earnings and Revenues Surpass Estimates
ZACKS· 2024-11-13 23:35
Core Insights - M-tron Industries, Inc. reported quarterly earnings of $0.81 per share, exceeding the Zacks Consensus Estimate of $0.54 per share, and up from $0.57 per share a year ago, representing a 50% earnings surprise [1] - The company achieved revenues of $13.21 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 8.31%, and an increase from $10.89 million year-over-year [2] - M-tron Industries' shares have increased approximately 52.4% year-to-date, outperforming the S&P 500's gain of 25.5% [3] Earnings Outlook - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook, including current consensus earnings expectations for upcoming quarters [4][6] - The current consensus EPS estimate for the next quarter is $0.56 on revenues of $12.6 million, and for the current fiscal year, it is $2.26 on revenues of $47.8 million [7] Industry Context - The Engineering - R and D Services industry, to which M-tron Industries belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges ahead [8]
MtronPTI Gears Up to Report Q3 Earnings: Things to Keep in Mind
ZACKS· 2024-11-12 17:10
M-tron Industries, Inc. (MPTI) or MtronPTI, is scheduled to report third-quarter 2024 (ended Sept. 30, 2024) results on Nov. 13, after the closing bell.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.This designer and manufacturer of highly engineered electronic components reported better-than-expected results for the third quarter of 2024. The company’s earnings per share (EPS) and revenues beat the Zacks Consensus Estimate by 26% and 5.4%.On a year-over-year basis, EPS grew 34% an ...
M-tron Industries, Inc. (MPTI) Increases Despite Market Slip: Here's What You Need to Know
ZACKS· 2024-11-05 00:20
M-tron Industries, Inc. (MPTI) closed the latest trading day at $52.20, indicating a +0.25% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 0.28%. Meanwhile, the Dow experienced a drop of 0.61%, and the technology-dominated Nasdaq saw a decrease of 0.33%.Heading into today, shares of the company had gained 20.45% over the past month, outpacing the Construction sector's gain of 3.42% and the S&P 500's gain of 0.41% in that time.Market participants will be closely follow ...
M-tron Industries, Inc. (MPTI) Ascends While Market Falls: Some Facts to Note
ZACKS· 2024-10-25 23:20
M-tron Industries, Inc. (MPTI) closed the latest trading day at $50.82, indicating a +0.65% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 0.03%. Elsewhere, the Dow saw a downswing of 0.61%, while the tech-heavy Nasdaq appreciated by 0.56%. Heading into today, shares of the company had gained 31.62% over the past month, outpacing the Construction sector's loss of 2.06% and the S&P 500's gain of 1.39% in that time. Analysts and investors alike will be keeping a close e ...
M-tron Industries, Inc. (MPTI) Stock Falls Amid Market Uptick: What Investors Need to Know
ZACKS· 2024-10-18 23:21
Company Performance - M-tron Industries, Inc. (MPTI) closed at $49, reflecting a -0.18% change from the previous session, underperforming compared to the S&P 500's 0.4% gain [1] - The stock has increased by 38.09% over the past month, outperforming the Construction sector's decline of 4.27% and the S&P 500's gain of 3.76% [1] - The company is expected to report an EPS of $0.54, indicating a 5.26% decrease from the same quarter last year, with a forecasted quarterly revenue of $12.2 million, up 12.03% year-over-year [1] Analyst Projections - Recent shifts in analyst projections for M-tron Industries, Inc. should be monitored, as they reflect near-term business trends and can indicate analysts' favorable outlook on the company's health and profitability [2] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks M-tron Industries as 2 (Buy), suggesting a positive investment outlook [2] - The Zacks Consensus EPS estimate has remained steady over the past month, indicating stability in analyst expectations [2] Valuation Metrics - M-tron Industries, Inc. has a Forward P/E ratio of 21.72, which is a discount compared to the industry's average Forward P/E of 21.79 [3] - The company has a PEG ratio of 0.78, significantly lower than the Engineering - R and D Services industry's average PEG ratio of 1.58 [3] - The Engineering - R and D Services industry is part of the Construction sector and holds a Zacks Industry Rank of 107, placing it in the top 43% of over 250 industries [3]
M-tron Industries, Inc. (MPTI) Stock Drops Despite Market Gains: Important Facts to Note
ZACKS· 2024-10-11 23:20
In the latest market close, M-tron Industries, Inc. (MPTI) reached $47.50, with a -1.04% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.61%. At the same time, the Dow added 0.97%, and the tech-heavy Nasdaq gained 0.33%. Shares of the company witnessed a gain of 41.13% over the previous month, beating the performance of the Construction sector with its gain of 5.21% and the S&P 500's gain of 5.36%. The investment community will be paying close attentio ...
MPTI Stock Trades Near 52-Week High: Is It Still Worth Buying?
ZACKS· 2024-10-08 17:53
Core Viewpoint - M-tron Industries, Inc. (MPTI) is experiencing significant stock performance, trading near its 52-week high, driven by strong growth in defense-related products and operational efficiencies [1][2][10]. Company Performance - MPTI's stock has increased by 28.8% in the past month, outperforming the Zacks Engineering - R and D Services industry (14%), the broader Construction sector (7%), and the S&P 500 (5.4%) [2]. - Since its market debut in October 2022, MPTI has shown steady growth, with revenues rising 67.2% to $11.8 million in Q2 2024 compared to $7.1 million in Q2 2022 [5][6]. - Adjusted EBITDA surged 200.0%, reaching $2.5 million in Q2 2024, up from $0.8 million in Q2 2022 [6]. Strategic Initiatives - The company is focusing on new engineering and design opportunities, enhancing manufacturing throughput, and implementing a stock option program to incentivize employees [7]. - MPTI is strategically positioned for organic growth in sectors like space and satellite technologies, radar applications, and electronic warfare solutions [8]. - The company is actively seeking acquisition opportunities to enhance revenues and profitability, targeting undervalued firms [8][9]. Financial Outlook - MPTI raised its fiscal 2024 revenue projection to $46-$48 million, up from $43-$45 million, due to strong defense-related sales and increased production [10]. - The Zacks Consensus Estimate for MPTI's fiscal 2024 earnings indicates a growth of 76.6% year-over-year, with fiscal 2025 earnings also showing a 4% increase [13]. Valuation - MPTI is currently trading at a discount compared to industry peers on a forward 12-month price-to-earnings (P/E) ratio basis, making it an attractive option for investors [11].
M-tron Industries, Inc. (MPTI) Rises As Market Takes a Dip: Key Facts
ZACKS· 2024-09-20 23:21
Company Performance - M-tron Industries, Inc. (MPTI) closed at $35.87, reflecting a +0.9% change from the previous session, outperforming the S&P 500's 0.19% loss [1] - Over the past month, MPTI shares declined by 5.6%, underperforming the Construction sector's gain of 8.17% and the S&P 500's gain of 2.06% [1] Earnings Forecast - MPTI is expected to report an EPS of $0.54, indicating a 5.26% decrease from the same quarter last year [2] - Revenue is forecasted at $12.2 million, representing a 12.03% increase from the prior-year quarter [2] - For the full year, earnings are projected at $2.26 per share and revenue at $47.8 million, reflecting increases of +76.56% and +16.11% respectively from the previous year [3] Analyst Estimates - Recent changes in analyst estimates for MPTI suggest positive sentiment regarding the company's business operations and profit generation capabilities [4] - The Zacks Rank system, which evaluates these estimate changes, currently ranks MPTI as 2 (Buy) [6] Valuation Metrics - MPTI has a Forward P/E ratio of 15.73, which is lower than the industry average Forward P/E of 22.02 [7] - The company has a PEG ratio of 0.68, compared to the Engineering - R and D Services industry's average PEG ratio of 1.58 [8] Industry Context - The Engineering - R and D Services industry, part of the Construction sector, holds a Zacks Industry Rank of 88, placing it in the top 35% of over 250 industries [9]
MPTI vs. HWM: Which Stock Is the Better Value Option?
ZACKS· 2024-09-05 16:41
Investors looking for stocks in the Engineering - R and D Services sector might want to consider either M-tron Industries, Inc. (MPTI) or Howmet (HWM) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong ea ...