Lake Street adjusted its price target for inTEST (INTT, Financial), reducing it from $10 to $8, while maintaining a Buy rating on the stock. Despite being surprised by weaker results and the withdrawal of 2025 guidance, the firm remains optimistic about the company’s competitive stance and future growth potential. Although 2025 is expected to be a transitional period, there is confidence in management's strategic efforts to control operating costs. The firm also notes optimism about potential improvements in the latter part of the year.
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 112.53% from the current price of $5.96. 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 98.49% from the current price of $5.96. 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: May 02, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- inTest Corp (INTT, Financial) delivered $26.6 million in revenue with a gross margin of 41.5%, generating over $5 million in cash and reducing debt by more than $3 million.
- The company saw increased sales in the Auto EV, Life Sciences, and other markets, which partially offset declines in the semiconductor and industrial sectors.
- inTest Corp (INTT) implemented tight cost controls, eliminated discretionary spending, and restricted hiring to improve profitability.
- The company continued to gain traction with new products, added new customers, and enhanced its market channels.
- inTest Corp (INTT) has a strong cash position with $22 million in cash and equivalents, and sufficient liquidity with available credit facilities.
Negative Points
- Sales were impacted by delays in customer spending and engineering challenges, pushing approximately $1.5 million of shipments out of the quarter.
- Revenue was down $3.2 million compared to Q1 2024, with significant declines in the semiconductor and industrial markets.
- Gross profit decreased by $2 million year-over-year due to lower sales volume and an unfavorable mix.
- Operating expenses increased by $1.3 million year-over-year, including restructuring costs and incremental expenses from acquisitions.
- The company faces significant uncertainty due to the global trade environment and tariffs, impacting order visibility and customer shipment schedules.
