M-tron Industries(US:MPTI) ZACKSยท2024-11-14 18:15Core Insights - M-tron Industries, Inc. (MPTI) reported strong third-quarter results for 2024, with both revenue and earnings exceeding expectations and showing year-over-year growth [1][2]. Financial Performance - Adjusted earnings per share (EPS) reached 81 cents, surpassing the consensus estimate of 54 cents by 50%, and increased by 42.1% from 57 cents in the same quarter last year [3]. - Quarterly revenues amounted to $13.2 million, beating the consensus mark of $12.2 million by 8.3%, and reflecting a 21.4% increase from $10.9 million in the prior year, driven by robust defense-related orders [4]. Margins and Backlog - Gross margin improved to 47.8%, up 500 basis points from 42.8% a year ago, attributed to higher revenues, enhanced production efficiencies, and a better product mix [5]. - Adjusted EBITDA was $3.3 million, a 41.3% increase from $2.34 million in the previous year, with an adjusted EBITDA margin of 25%, up 350 basis points from 21.5% [6]. - Total backlog as of September 30 was $39.76 million, down from $47.83 million at the end of 2023 and $50.28 million a year ago, reflecting a strategic focus on securing long-duration program-centric businesses [6]. Financial Position - As of September 30, 2024, MPTI had cash and cash equivalents of $8.49 million, an increase from $3.91 million at the end of 2023, while inventories rose to $9.55 million from $8.88 million [7]. Outlook - MPTI anticipates exceeding its previous guidance for 2024, expecting revenues between $46 million and $48 million, up from $41.17 million in the previous year, with an adjusted EBITDA margin projected in the range of 19-21% [8].