inTest Corp (INTT) Reports Record Revenue of $32. ...
Record revenue of $32.7 million in Q3 2023, up 6.1% from the same period last year.
Earnings per diluted share increased by 4.3% to $0.24 YoY.
Operating income grew 3.9% YoY to $3.3 million.
Net earnings increased by 17.5% YoY to $2.966 million.
On November 3, 2023, inTest Corp (INTT), a global supplier of innovative test and process technology solutions, announced its financial results for the third quarter ended September 30, 2023. The company reported a record revenue of $32.7 million, a 6.1% increase from the same period last year. Earnings per diluted share also saw a rise of 4.3% to $0.24 year-over-year.
Financial Performance Highlights
inTest Corp (INTT) reported a gross profit of $15.3 million, up 10.3% from the same period in 2022. The gross margin stood at 46.9%, up from 45.2% in Q3 2022. Operating expenses, including intangible amortization, increased by 12.2% to $12.05 million. Despite this, the company's operating income saw a 3.9% increase to $3.3 million, and net earnings rose by 17.5% to $2.966 million.
President and CEO, Nick Grant, commented on the company's performance,
We believe the effectiveness of our Five-Point Strategy to drive growth and profitability through geographic and market diversification, deeper market penetration and broader reach was demonstrated by our strong financial results in the quarter."
Balance Sheet and Cash Flow Review
As of the end of Q3 2023, inTest Corp (INTT) had cash and cash equivalents of $41.7 million, an increase of $4.3 million from June 30, 2023. The company generated $6.2 million in cash from operations during the quarter. After paying down $1.0 million in debt, total debt was $13.1 million at the end of the quarter.
Outlook for Q4 and Full Year 2023
Despite the strong performance in Q3, the company is moderating its expectations for the remainder of 2023 due to shifts in customer demand. Revenue for Q4 2023 is expected to be approximately $28 million to $30 million with a gross margin of approximately 45%. The company's CFO, Duncan Gilmour, stated,
Given the change in customer behavior regarding project timing, order push outs and decisions on future projects, we believe it is prudent to moderate our expectations for the fourth quarter."
For the full year of 2023, the company has updated its guidance. It now expects revenue to be between $125 million and $127 million, down from the previous guidance of $127 million to $131 million.
For more detailed information, visit the inTest Corp (INTT) investor relations page.
Explore the complete 8-K earnings release (here) from inTest Corp for further details.
This article first appeared on GuruFocus.
