CTS (NYSE:CTS) Posts Quarterly Earnings Results

CTS (NYSE:CTS) announced its quarterly earnings results on Tuesday. The electronics maker reported $0.77 EPS for the quarter, beating the consensus estimate of $0.65 by $0.12, FiscalAI reports. The firm had revenue of $149.58 million during the quarter, compared to analyst estimates of $145.95 million.

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

• Strong third-quarter performance: Revenue rose 5% year over year to $149.6 million, while record gross margin of 42.2%, adjusted EBITDA margin of 24.7%, and adjusted EPS of $0.77 reflected strong execution and favorable mix.
• CTS raised its 2026 outlook to revenue of $580 million–$590 million and adjusted diluted EPS of $2.78–$2.88, supported by solid diversified-market demand and a healthy overall book-to-bill ratio of 1.18.
• The Millar acquisition expands CTS’s exposure to medical and industrial markets and adds advanced pressure, chemical, electrochemical, and catheter-based sensing capabilities. Millar is expected to contribute approximately $30 million in annual revenue and become EPS-accretive in the second half of 2027.
• Aerospace and defense bookings remained strong, with a 1.91 book-to-bill ratio and a healthy backlog, while industrial bookings reached 1.36 and medical revenue grew 21% year over year.
• Management expects some normalization from the unusually favorable third-quarter mix and foreign-exchange benefit, meaning margins may not remain at the record 42.2% level. Transportation demand also faces flat-to-modestly declining vehicle production amid tariff, geopolitical, and consumer-demand uncertainty, while medical bookings fell below replacement at 0.66 due to order timing.

CTS Trading Up 9.7%

Shares of NYSE:CTS opened at $59.13 on Wednesday. CTS has a one year low of $36.21 and a one year high of $69.55. The stock has a fifty day moving average of $57.39 and a 200-day moving average of $57.03.

CTS Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, October 23rd. Shareholders of record on Friday, September 25th were issued a $0.04 dividend. The ex-dividend date of this dividend was Friday, September 25th. This represents a $0.16 annualized dividend and a dividend yield of 0.3%.

Analysts Set New Price Targets

Several analysts recently commented on the company. Barrington Research began coverage on CTS in a research report on Thursday, September 10th. They issued an “outperform” rating and a $80.00 target price on the stock. Weiss Ratings raised shares of CTS from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. Wall Street Zen upgraded CTS from a “hold” rating to a “buy” rating in a research report on Sunday, September 27th. Finally, Lake Street Capital began coverage on CTS in a research note on Wednesday, September 2nd. They issued a “buy” rating and a $67.00 price objective on the stock. Three research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, CTS presently has an average rating of “Moderate Buy” and a consensus target price of $73.50.

Key CTS News

Here are the key news stories impacting CTS this week:

• Positive Sentiment: CTS reported third-quarter adjusted earnings of $0.77 per share, above consensus estimates ranging from $0.65 to $0.66 and up from $0.60 a year earlier. Revenue reached $149.6 million, exceeding several published estimates, while management highlighted record margins. CTS Announces Third Quarter 2026 Results
• Positive Sentiment: Management raised its 2026 guidance to $580 million-$590 million in sales and $2.78-$2.88 in adjusted EPS, signaling confidence in demand, profitability and continued execution. CTS Raises 2026 Guidance
• Positive Sentiment: The earnings call emphasized diversified market growth, stronger margins and progress integrating the Millar acquisition, providing investors with potential drivers for future revenue and earnings expansion. CTS Q3 2026 Earnings Call Highlights
• Positive Sentiment: CTS shares broke above their 200-day moving average near $57.03, a technical signal that may attract momentum-oriented investors. CTS Share Price Breaks Above 200-Day Moving Average
• Neutral Sentiment: CTS released its earnings presentation and webcast materials, giving investors additional detail on quarterly performance, guidance and the Millar integration. CTS Releases Q3 Earnings and Webcast Materials
• Negative Sentiment: One data provider reported revenue of $149.6 million as slightly below its $150.6 million estimate, and disclosed that CTS insiders made three sales totaling 130,000 shares over the past six months. These factors could temper enthusiasm despite the earnings and guidance beats. CTS Releases Q3 2026 Earnings

CTS Company Profile

CTS Corporation (NYSE: CTS) is a designer and manufacturer of sensors, actuators, and electronic components for original equipment manufacturers and industrial customers. The company develops custom-engineered solutions that help measure, control, and manage electrical and mechanical functions in a range of products and systems.

Its offerings include position, pressure, temperature, and motion sensors; piezoelectric and electronic components; switches, controls, and actuators; and other sensing and mechatronic products.