What Happened?

Shares of electronic components manufacturer CTS Corporation (NYSE: CTS) jumped 4.3% in the afternoon session after the company reported second-quarter financial results that surpassed analyst expectations for both revenue and earnings per share. The company reported second-quarter sales of $135.3 million, a 4% increase year-over-year, which beat analyst estimates of around $132.7 million. Earnings per share (EPS) also came in strong at $0.62, significantly higher than the $0.48 reported in the same quarter last year and comfortably ahead of the consensus estimate of $0.55. This growth was driven by a 13% increase in sales to diversified end markets, which successfully offset a 6% decline in the transportation sector. Net income rose to $19 million from $15 million in the prior year. To cap off the positive report, CTS maintained its full-year 2025 guidance, projecting sales between $520 million and $550 million and adjusted EPS in the range of $2.20 to $2.35.

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What Is The Market Telling Us

CTS’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

CTS is down 17.6% since the beginning of the year, and at $42.75 per share, it is trading 27.5% below its 52-week high of $58.97 from November 2024. Investors who bought $1,000 worth of CTS’s shares 5 years ago would now be looking at an investment worth $2,162.

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