CTS (NYSE:CTS) Posts Earnings Results, Beats Estimates By $0.02 EPS

CTS (NYSE:CTS) issued its earnings results on Tuesday. The electronics maker reported $0.62 EPS for the quarter, beating analysts’ consensus estimates of $0.60 by $0.02, FiscalAI reports. CTS had a return on equity of 11.92% and a net margin of 11.14%.The business had revenue of $137.27 million during the quarter, compared to analyst estimates of $135.86 million. CTS updated its FY 2026 guidance to 2.300-2.450 EPS.

Here are the key takeaways from CTS’s conference call:

• Diversification progress: Diversified end markets now represent ~59% of revenue and grew 16% YoY in Q4, supporting higher-quality earnings and margin expansion.
• Financial results & guidance: Q4 sales were $137M (+9% YoY) with adjusted gross margin up 150 bps to 39.1% and adjusted EPS of $0.62; management forecasts 2026 sales of $550–$580M and adjusted EPS of $2.30–$2.45.
• End-market momentum: Medical sales surged 41% in Q4 with bookings up 37%, while industrial sales rose 16% and bookings were up 22%, indicating broad-based demand recovery.
• Transportation headwinds: Transportation sales declined 7% in 2025 due to China and commercial vehicle weakness; management expects H1 2026 softness even as they secured ~$100M in Q4 awards and longer‑lead wins (e.g., floor-hinged tech) that start revenue in 2028.
• Cash generation & capital return: Strong operating cash flow of $102M in 2025, a cash balance of $82M, and $57M of buybacks completed (1.4M shares) with ~$90M remaining under the repurchase program.

CTS Stock Up 3.4%

Shares of NYSE:CTS opened at $57.48 on Wednesday. The business’s 50 day moving average is $47.26 and its 200 day moving average is $43.25. CTS has a 12-month low of $34.02 and a 12-month high of $59.66. The stock has a market cap of $1.67 billion, a price-to-earnings ratio of 29.18, a PEG ratio of 1.45 and a beta of 0.89. The company has a quick ratio of 2.12, a current ratio of 2.64 and a debt-to-equity ratio of 0.17.

Key Headlines Impacting CTS

Here are the key news stories impacting CTS this week:

• Positive Sentiment: Q4 results beat consensus — CTS reported $0.62 EPS and $137.27M revenue, topping estimates and showing margin improvement, which supported the rally. Q4 & Full-Year 2025 Results
• Positive Sentiment: Company set FY‑2026 guidance — CTS provided EPS guidance of $2.30–$2.45 and revenue guidance of $550M–$580M, giving investors forward numbers to model and signaling management confidence in demand. Guidance & Strategic Priorities
• Positive Sentiment: Management highlighted diversification and medical growth initiatives — executives emphasized advancing medical products and diversification of end markets on the call/slides, which supports higher-margin long‑term growth expectations. Slide Deck / Press Release
• Neutral Sentiment: Full earnings materials and call transcript are available for detail — useful for analysts to update models, but the transcript itself adds incremental color rather than new headline news. Earnings Call Transcript
• Neutral Sentiment: Institutional/hedge-fund activity noted in post‑earnings coverage — QuiverQuant data shows mixed recent moves by large funds, which can influence flows but don’t immediately change fundamentals. QuiverQuant Coverage
• Negative Sentiment: Short interest jumped in January — short interest rose ~52.9% to 591,426 shares (about 2.1% of shares), increasing potential downside pressure and volatility if bearish sentiment persists.

Hedge Funds Weigh In On CTS

Large investors have recently bought and sold shares of the stock. Royal Bank of Canada raised its holdings in shares of CTS by 11.2% in the first quarter. Royal Bank of Canada now owns 7,036 shares of the electronics maker’s stock valued at $292,000 after purchasing an additional 710 shares during the last quarter. Amundi increased its stake in CTS by 9.7% in the 1st quarter. Amundi now owns 11,542 shares of the electronics maker’s stock valued at $480,000 after buying an additional 1,019 shares during the last quarter. AQR Capital Management LLC lifted its position in shares of CTS by 19.4% during the 1st quarter. AQR Capital Management LLC now owns 9,576 shares of the electronics maker’s stock worth $398,000 after buying an additional 1,558 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of CTS by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,904 shares of the electronics maker’s stock worth $744,000 after buying an additional 785 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of CTS by 11.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 70,298 shares of the electronics maker’s stock valued at $2,921,000 after acquiring an additional 7,144 shares in the last quarter. 96.87% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Separately, Weiss Ratings restated a “hold (c)” rating on shares of CTS in a report on Wednesday, January 21st. One equities research analyst has rated the stock with a Hold rating, Based on data from MarketBeat, the company presently has an average rating of “Hold”.

CTS declared that its board has authorized a share buyback plan on Friday, November 7th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the electronics maker to reacquire up to 8.5% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

CTS Company Profile

CTS Corporation (NYSE:CTS) is a global manufacturer and supplier of electronic components and sensors, headquartered in Lisle, Illinois. Established in 1896 as the Chicago Telephone Supply Company, the firm has evolved over more than a century to become a diversified provider of high-precision products for a wide range of end markets.

The company’s core business encompasses the design, development and production of sensors and actuators, frequency control devices such as quartz crystals and filters, multilayer ceramic capacitors, and inductive components.