Shares of CTS Corp (NYSE: CTS) plummeted 5.77% in pre-market trading on Wednesday following the release of its first-quarter 2025 earnings report, which fell short of analysts' expectations.
The electronic components manufacturer reported quarterly revenue of $125.8 million, missing the analyst consensus estimate of $128.7 million by 2.3%. Sales remained flat compared to the same period last year. Adjusted earnings per share came in at $0.44, falling short of the expected $0.49 and marking a 6.38% decrease from the $0.47 reported in the first quarter of 2024.
Despite the disappointing results, CTS Corp maintained its full-year 2025 guidance, projecting sales between $520 million and $550 million, with adjusted earnings per share in the range of $2.20 to $2.35. The company's CEO, Kieran O'Sullivan, highlighted double-digit sales growth in diversified markets but acknowledged challenges in the overall operating environment. Investors appear to be reacting negatively to the earnings miss and lack of growth, leading to the significant pre-market decline in CTS Corp's stock price.