INTT is forecasting a slight improvement in its financial performance for the second quarter compared to the first quarter of 2025. The company attributes this expected growth to better sales volumes and cost-cutting measures. However, it remains cautious due to uncertainties surrounding the global trade environment, which could indirectly affect demand. While the long-term market prospects are strong, INTT is currently focusing its guidance only on the second quarter until there's more clarity about the latter half of the year.
For Q2, INTT anticipates revenues between $27 million and $29 million, with a gross margin around 42%. Operating expenses are expected to range from $13.0 million to $13.5 million, excluding about $200,000 in restructuring costs linked to Videology and other initiatives. These projections take into account previously announced delays in customer order deliveries and a slowdown in new orders, influenced by market uncertainties related to recent and future tariffs.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for inTest Corp (INTT, Financial) is $12.67 with a high estimate of $15.00 and a low estimate of $10.00. The average target implies an upside of 103.64% from the current price of $6.22. More detailed estimate data can be found on the inTest Corp (INTT) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, inTest Corp's (INTT, 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 inTest Corp (INTT, Financial) in one year is $11.83, suggesting a upside of 90.19% from the current price of $6.22. 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 inTest Corp (INTT) Summary page.
INTT Key Business Developments
Release Date: March 07, 2025
- Fourth Quarter Revenue: $36.6 million, including $8.5 million from Alfamation.
- Full-Year Revenue: $130.7 million, marking the third consecutive year of record revenue.
- Full-Year Sales Growth: 6%, driven by a $25 million contribution from the Alfamation acquisition.
- Gross Profit: $14.5 million in Q4, with a $1.6 million charge impacting gross margin.
- Gross Margin: 39.7% for Q4, impacted by a 430-basis-point charge related to inventory step-up.
- Net Earnings: $1.5 million or $0.12 per diluted share for Q4.
- Adjusted Net Earnings: $2.8 million or $0.23 per diluted share for Q4.
- Adjusted EBITDA: $4.4 million for Q4, representing a 12.1% margin.
- Operating Cash Flow: $2.6 million generated in Q4.
- Free Cash Flow: $2.4 million in Q4.
- Total Debt: $15 million at the end of Q4, with a leverage ratio of 1.4x.
- Cash and Equivalents: $19.8 million at the end of Q4, up $1.8 million from the previous quarter.
- Backlog: $39.5 million at the end of 2024, including $7.4 million from Alfamation.
- 2025 Revenue Outlook: $125 million to $135 million, with gradual profitability improvement expected.
- Q1 2025 Revenue Forecast: $27 million to $29 million, with a gross margin of approximately 41%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- inTest Corp (INTT, Financial) reported record fourth quarter revenue of $36.6 million and a third consecutive year of record revenue at $130.7 million for 2024.
- The company's strategy of market and customer diversification, along with a focus on innovation, has proven effective, particularly in the auto/EV and defense aerospace markets.
- The acquisition of Alfamation contributed significantly to revenue growth, particularly in the auto/EV sector, with advanced testing technologies for infotainment systems and battery packs.
- Fourth quarter orders increased by 11% year over year, with notable growth in semi-orders and life sciences demand more than doubling to a record $2.3 million.
- The company has a strong cash position with $19.8 million in cash and equivalents and a total debt leverage ratio of 1.4x, providing financial flexibility for future investments and acquisitions.
Negative Points
- The company experienced a 26% decline in the semiconductor market, which remains a significant headwind.
- Gross profit in the fourth quarter decreased sequentially due to a $1.6 million charge related to the Alfamation acquisition, impacting gross margin negatively.
- Backlog at the end of 2024 was $39.5 million, down $600,000 from the prior year period and $6 million sequentially, reflecting shipment timing issues.
- The outlook for 2025 is cautious, with expected full-year revenue of $125 million to $135 million, indicating potential stagnation compared to 2024.
- The company faces uncertainty related to tariffs and customer spending, which could impact market competitiveness and delay customer investments.
