B. Riley has recently adjusted its outlook on Rogers Corporation (ROG, Financial), reducing the price target from $130 to $80 while maintaining a Buy rating on the stock. This revision reflects anticipated challenges in the macroeconomic environment, particularly affecting the automotive and industrial sectors in the latter half of 2025.
The firm cites potential declines in sales across key technology and automotive markets, including PCs, smartphones, and vehicles, as significant factors behind the adjustment. These sectors are expected to face headwinds that could impact Rogers Corporation's performance moving forward, prompting the recalibration of financial expectations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Rogers Corp (ROG, Financial) is $105.00 with a high estimate of $130.00 and a low estimate of $85.00. The average target implies an upside of 90.60% from the current price of $55.09. More detailed estimate data can be found on the Rogers Corp (ROG) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Rogers Corp's (ROG, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Rogers Corp (ROG, Financial) in one year is $118.42, suggesting a upside of 114.96% from the current price of $55.09. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Rogers Corp (ROG) Summary page.
ROG Key Business Developments
Release Date: February 19, 2025
- Fourth Quarter Revenue: $192 million, a decline of 9% from the prior quarter.
- Full Year 2024 Revenue: $830 million, 9% lower than the prior year.
- Fourth Quarter Gross Margin: 32.1%, a decrease of 310 basis points from Q3.
- Full Year 2024 Gross Margin: 33.4%, 40 basis points lower than the prior year.
- Fourth Quarter Adjusted EPS: $0.46, compared to $0.98 in Q3.
- Full Year 2024 Adjusted Earnings: $2.72 per share, down from $3.78 in 2023.
- Free Cash Flow 2024: $71 million, similar to prior year levels.
- Cash Position at Year-End 2024: $160 million.
- Capital Expenditures 2024: $56 million.
- Share Repurchases 2024: $20 million, with $12 million in Q4.
- First Quarter 2025 Revenue Guidance: $180 million to $195 million.
- First Quarter 2025 Gross Margin Guidance: 29% to 30.5%.
- First Quarter 2025 Adjusted EPS Guidance: $0.10 to $0.40.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Rogers Corp (ROG, Financial) delivered fourth-quarter results in line with expectations, with sales, gross margin, and adjusted earnings near the midpoint of guidance ranges.
- The company made significant progress in commercial innovation and operational excellence initiatives, securing new design wins and launching new products.
- Rogers Corp (ROG) achieved robust free cash flow conversion in 2024, maintaining a strong balance sheet to support organic and inorganic growth objectives.
- Aerospace and defense sales grew at a double-digit rate, driven by strong demand for military radar applications.
- The company successfully executed its local-for-local manufacturing strategy, adding new facilities in China to support growth and mitigate tariff impacts.
Negative Points
- Fourth-quarter revenues declined by 9% from the prior quarter, primarily due to challenging market conditions and normal seasonality.
- The company faced significant market headwinds in 2024, particularly in industrial and EV/HEV markets, leading to a major inventory destocking among customers.
- Gross margin decreased by 310 basis points in Q4 due to lower volume and unfavorable product mix.
- Rogers Corp (ROG) experienced a significant decline in curamik power substrate sales, impacting overall sales performance.
- The company anticipates a relatively flat sales outlook for the first quarter of 2025 due to cautious customer ordering and ongoing inventory challenges.
