CTS (NYSE:CTS) Announces Quarterly Earnings Results

Key Points

• CTS beat quarterly expectations: Revenue rose 7% year over year to $144.8 million, while EPS of $0.74 exceeded the $0.61 consensus estimate.
• Full-year guidance was raised: CTS now expects FY 2026 adjusted EPS of $2.55–$2.70, above the $2.43 analyst consensus; revenue guidance is $565 million–$585 million.
• Performance was mixed across markets: Adjusted gross margin and operating cash flow improved, with diversified end-market sales up 15%, but transportation-market sales declined 2%. Analysts maintain a consensus “Hold” rating.

CTS (NYSE:CTS - Get Free Report) issued its quarterly earnings results on Tuesday. The electronics maker reported $0.74 EPS for the quarter, topping analysts' consensus estimates of $0.61 by $0.13, FiscalAI reports. CTS had a return on equity of 12.90% and a net margin of 12.46%.The business had revenue of $144.78 million during the quarter, compared to analysts' expectations of $143.43 million. CTS updated its FY 2026 guidance to 2.550-2.700 EPS.

CTS Stock Performance

NYSE:CTS opened at $60.49 on Tuesday. The stock has a 50-day moving average price of $63.08 and a 200 day moving average price of $56.05. The stock has a market capitalization of $1.73 billion, a P/E ratio of 25.85, a P/E/G ratio of 1.54 and a beta of 1.04. CTS has a 12-month low of $36.03 and a 12-month high of $69.55. The company has a current ratio of 2.52, a quick ratio of 1.98 and a debt-to-equity ratio of 0.11.

CTS Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Stockholders of record on Friday, June 26th were paid a $0.04 dividend. The ex-dividend date of this dividend was Friday, June 26th. This represents a $0.16 dividend on an annualized basis and a dividend yield of 0.3%. CTS's dividend payout ratio is 6.84%.

Hedge Funds Weigh In On CTS

A number of hedge funds and other institutional investors have recently modified their holdings of CTS. Royal Bank of Canada grew its position in shares of CTS by 11.2% during 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 in the last quarter. Amundi lifted its position in CTS by 9.7% during the first quarter. Amundi now owns 11,542 shares of the electronics maker's stock valued at $480,000 after purchasing an additional 1,019 shares during the last quarter. AQR Capital Management LLC lifted its position in CTS by 19.4% during the first quarter. AQR Capital Management LLC now owns 9,576 shares of the electronics maker's stock valued at $398,000 after purchasing an additional 1,558 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew 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 in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of CTS by 11.3% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 70,298 shares of the electronics maker's stock worth $2,921,000 after buying an additional 7,144 shares in the last quarter. Institutional investors own 96.87% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on CTS shares. Zacks Research lowered shares of CTS from a "strong-buy" rating to a "hold" rating in a report on Monday, June 29th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of CTS in a report on Tuesday, May 26th. Two research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, CTS presently has a consensus rating of "Hold".

Key Stories Impacting CTS

Here are the key news stories impacting CTS this week:

• Positive Sentiment: CTS reported second-quarter revenue of $144.8 million, up 7% year over year and ahead of the $143.4 million consensus estimate. Reported EPS was $0.74, $0.13 above expectations; the company also cited adjusted diluted EPS of $0.66, compared with $0.62 a year earlier. CTS Announces Second Quarter 2026 Results
• Positive Sentiment: The company raised its FY 2026 adjusted EPS outlook to $2.55-$2.70, above the $2.43 analyst consensus. Its revenue forecast of $565 million-$585 million brackets consensus of $571.1 million, with the midpoint modestly above expectations. CTS Q2 2026 Sales Rise 7 Percent as Outlook Increases
• Positive Sentiment: Profitability and cash generation improved: adjusted gross margin increased to 41.5% from 38.7%, net income rose to $19.2 million from $18.5 million, and operating cash flow grew to $33.4 million from $28.4 million. Diversified end-market sales climbed 15% and accounted for 59% of revenue. CTS Second-Quarter Results
• Negative Sentiment: Transportation-market sales declined 2% year over year, indicating continued weakness in an important end market and partially offsetting stronger diversified-market demand. CTS Q2 2026 Sales Rise 7 Percent as Outlook Increases

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.

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