Rogers reports strong demand from hybrid-electric vehicles, portable electronics and renewable energy sectors


Rogers Corporation (ROG), the specialist materials and components manufacturer,  is up 14.4% since reporting Q1 earnings last Wednesday with revenues increasing 26.9% and EPS up 79% to $1.68.  Strong revenue growth in Q1 2017 was driven by increased organic sales across all business units as well as strong sales performance by recently acquired businesses

Elastomeric Material Solutions, which provides products for cushioning, sealing, impact protection and vibration management applications for general industrial and portable electronics,  reported a 65.9% increase in sales to $76.8 million. Boosted by $22.7 million of net sales from acquisitions as well as higher demand for portable electronics, general industrial, automotive and mass transit applications.

Power Electronics Solutions, which delivers solutions for energy-efficient motor drives, e-Mobility and renewable energy, reported 21% increase in sales to $42.7 million. The first quarter increase was primarily due to broad based demand across markets, including renewable energy, hybrid-electric vehicles, variable frequency motor drives, and laser diode coolers.

The company raised it Q2 guidance for net sales to a range of $190 to $200 million and adjusted earnings to a range of $1.16 to $1.26 per diluted share, both of which were well above street consensus.

The jump in the stock price means the stock is trading on a TTM PE of 32 and forward PE of 20.  Given strong growth that valuation looks very reasonable.


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Disclosure: The author holds no positions in any of the stocks mentioned nor has any intentions to initiate any in the next 72 hours.