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    inTest Corp (INTT)

    Q4 2024 Earnings Summary

    Reported on Mar 13, 2025 (Before Market Open)
    Pre-Earnings Price$8.12Last close (Mar 6, 2025)
    Post-Earnings Price$9.10Open (Mar 7, 2025)
    Price Change
    $0.98(+12.07%)
    • The company maintains a strong competitive position, with no changes in the competitive landscape, and continues to generate tremendous value for customers through expertise and innovation.
    • The Life Sciences business is experiencing broad-based strong orders, particularly driven by induction heating solutions, indicating growth opportunities in this market segment.
    • The company expects revenue to increase during 2025, with the back-end semiconductor segment showing pockets of improvement and stronger performance in the second half, suggesting potential for revenue growth despite current uncertainties.
    • Front-end semiconductor market not expected to recover until 2026, indicating prolonged weakness in a significant segment and potentially impacting revenue growth.
    • Uncertainty due to tariffs and general economic conditions is causing customers in broader industrial markets and the auto sector to delay spending, which could negatively affect the company's sales in these areas.
    • The company has provided flat revenue guidance for 2025, suggesting challenges in achieving its prior aspirational target of reaching $200 million in revenue, with progress being delayed due to market conditions.
    MetricYoY ChangeReason

    Total Revenue

    +40% (from $26.16M in Q4 2023 to $36.6M in Q4 2024)

    Total revenue's strong 40% increase reflects a significant rebound in market demand and business expansion, driven by robust performance across both domestic and foreign markets compared to the previous period.

    US Revenue

    +32% (from $13.55M in Q4 2023 to $17.95M in Q4 2024)

    US revenue growth of 32% indicates improved market penetration and a strong domestic sales performance over the previous period, likely benefiting from enhanced product mix and pricing strategies that offset earlier cyclical weaknesses.

    Foreign Revenue

    +48% (from $12.61M in Q4 2023 to $18.66M in Q4 2024)

    Foreign revenue surged by 48% as international demand rebounded markedly relative to Q4 2023, suggesting that global market conditions and possibly integration benefits (from recent acquisitions in earlier periods) significantly bolstered overseas sales.

    Operating Income

    +600%+ (from $294K in Q4 2023 to $2,079K in Q4 2024)

    Operating income increased dramatically by over 600% due to a combination of the expanded revenue base, improved operational leverage, and cost efficiencies achieved over the prior period, which transformed a previously narrow margin into robust profitability.

    Net Earnings

    +96% (from $766K in Q4 2023 to $1,504K in Q4 2024)

    Net earnings nearly doubled as a result of the substantial revenue uptick and strong operating performance, which improved margins and net income, reflecting the cumulative positive impact of better market conditions and cost management initiatives implemented since Q4 2023.

    Basic Earnings Per Share

    +100% (from $0.06 in Q4 2023 to $0.12 in Q4 2024)

    Basic EPS doubled primarily because the significant increases in net earnings, combined with a relatively stable share base, delivered considerably higher earnings on a per-share basis relative to the previous period.

    MetricPeriodPrevious GuidanceCurrent GuidanceChange

    Revenue

    FY 2024

    $128 million to $131 million

    no current guidance

    no current guidance

    Gross Margin

    FY 2024

    42% to 43%

    no current guidance

    no current guidance

    Operating Expenses

    FY 2024

    $53 million (incl. intangible asset amortization expense of $3.3 million )

    no current guidance

    no current guidance

    Effective Tax Rate

    FY 2024

    17% to 19%

    no current guidance

    no current guidance

    Capital Expenditures

    FY 2024

    1% to 2% of sales

    no current guidance

    no current guidance

    Full-Year Revenue

    FY 2025

    no prior guidance

    $125 million to $135 million

    no prior guidance

    Profitability

    FY 2025

    no prior guidance

    Anticipated to gradually improve throughout the year

    no prior guidance

    Amortization Expense

    FY 2025

    no prior guidance

    $3.4 million

    no prior guidance

    Effective Tax Rate

    FY 2025

    no prior guidance

    approximately 18%

    no prior guidance

    Capital Expenditures

    FY 2025

    no prior guidance

    approximately 1% to 2% of revenue

    no prior guidance

    MetricPeriodGuidanceActualPerformance
    Revenue
    Q4 2024
    $34 million to $37 million
    $36.603 million
    Met
    Gross Margin
    Q4 2024
    ~42%
    39.7% (14,539 ÷ 36,603)
    Missed
    Operating Expenses
    Q4 2024
    ~$13.5 million
    $12.460 million
    Beat
    GAAP EPS
    Q4 2024
    ~$0.08
    $0.12
    Beat
    Revenue
    FY 2024
    $128 million to $131 million
    ~$130.69 million (sum of Q1–Q4: 29,824+ 33,991+ 30,272+ 36,603)
    Met
    Gross Margin
    FY 2024
    42% to 43%
    ~44.2% ((29,824+33,991+30,272+36,603) − (16,748+20,194+13,947+22,064)) ÷ (29,824+33,991+30,272+36,603)
    Beat
    Operating Expenses
    FY 2024
    ~$53 million
    ~$47.66 million (sum of Q1–Q4 total operating expenses: 11,534+ 11,686+ 11,979+ 12,460)
    Beat
    Effective Tax Rate
    FY 2024
    17% to 19%
    ~16.8% (total tax 1,893 ÷ pre-tax 11,284)
    Met
    Capital Expenditures
    FY 2024
    1% to 2% of sales
    ~$1.324 million (sum of Q1–Q4: 340+ 316+ 505+ 163) = ~1.0% of $130.69 million sales
    Met
    TopicPrevious MentionsCurrent PeriodTrend

    Front-end Semiconductor

    Consistently discussed as facing significant challenges and prolonged weakness in Q1–Q3, with references to softness, production delays, and depressed orders ( , , )

    Highlighted in Q4 as persistently weak with expected recovery delayed until 2026 ( , , )

    Consistent bearish sentiment, with continued challenges and a delayed recovery outlook

    Back-end Semiconductor

    Mentioned from Q1 to Q3 as showing sequential improvements, growing order pipelines, and margin expansion, offsetting front-end weakness ( , , )

    In Q4, noted strong order growth and tangible improvements that helped buffer the overall semiconductor performance ( , , )

    Increasingly bullish sentiment, as improvements are more pronounced in Q4

    Integration of Alfamation

    In Q1, initial integration was positively noted with modest revenue contributions; by Q2 and Q3, progress, synergies, and technology sharing (especially for automotive testing) were emphasized ( , , )

    Q4 emphasized a significant impact on automotive testing, with higher revenue contribution and strong customer retention ( , )

    Strengthening integration with growing positive impact on diversification and automotive segments

    Automotive Sector

    Early periods (Q1–Q3) noted automotive contributions primarily through Alfamation, with order volatility tied to model year launches and shifts between EV and ICE/hybrid dynamics ( , , )

    Q4 highlighted incremental order increases despite overall softness in EV demand and continued market volatility ( , , )

    Mixed sentiment with ongoing volatility and cautious optimism as trends (EV slowdown vs. ICE/hybrid steadiness) persist

    Industrial Market & Macroeconomic Uncertainty

    Q2 discussed sluggish industrial market conditions and higher capital costs, while Q1 had no mention and Q3 provided limited details ( )

    Q4 discussed notable market softness, tariff-related uncertainties, and delayed investments, clearly impacting industrial revenue ( , , )

    Ongoing bearish concerns that have become more emphasized in Q4 amid external economic pressures

    Cost Reduction & Operational Efficiency

    Not mentioned in Q1; by Q2 the focus on cost savings and headcount reductions began, with Q3 detailing a 10% headcount reduction and margin improvements from efficiency actions ( , , , )

    Q4 continued the narrative with further operational improvements, facility consolidation, and targeted cost reductions driving sequential expense declines ( , )

    Increasingly positive and proactive sentiment as the company sharpens its focus on operational efficiency

    Revenue Guidance & Order Pipeline

    Q1 provided broader guidance ranges with signs of order adjustments; Q2 offered mid-range guidance with healthy pipelines but slow conversions; Q3 noted tightened guidance with limited forward visibility ( , , )

    Q4 offered cautious revenue forecasts for 2025 along with mixed signals in the order pipeline, including pushouts and order timing challenges ( , )

    Persistent uncertainty with cautious outlook as mixed market signals continue to affect order visibility

    Emerging Life Sciences

    Not mentioned in Q1, Q2, or Q3

    Q4 revealed strong growth with revenue more than doubling to a record $2.3 million driven by sizeable orders for induction heating solutions in medical applications ( , )

    Newly emerged positive theme that could drive future diversification and growth

    Innovation & New Product Development

    Consistently emphasized from Q1 (SCAiLX vision camera, ThermoStream), Q2 (competitive displacement programs), and Q3 (modified thermal test solution, automated manipulator) ( , , )

    Q4 continued the focus by highlighting advanced test solutions, a strong innovation strategy, and plans under Vision 2030 to stay ahead of competitors ( , , )

    Steady, bullish sentiment with innovation remaining a core driver for future growth and competitive advantage

    Defense & Aerospace

    Q1 described solid and robust performance with diverse applications; Q2 had little mention, Q3 offered brief positive comments on growing demand in the sector ( , , )

    In Q4, although orders were down, there was notable strong interest from key defense and aerospace customers, suggesting expected recovery ( , , )

    Mixed sentiment with earlier robust performance now showing softer order volumes but maintained strategic importance

    1. 2027 Revenue Targets
      Q: Are you backing away from your $200M-$250M target?
      A: Management reaffirmed their commitment to reaching over $200 million in revenues, believing there's room in their markets to achieve this goal, and will discuss more at the Investor Day on March 26.

    2. 2025 Revenue Outlook
      Q: How will revenues progress in 2025 by market?
      A: Revenues are expected to increase quarterly through 2025, with a stronger second half due to shipment delays now scheduled then. The auto sector is currently soft but is expected to pick up towards the end of the year.

    3. M&A Strategy
      Q: What's the update on your M&A pipeline?
      A: The company remains active in pursuing acquisitions, viewing current conditions as favorable, and M&A is still an important part of their strategy.

    4. Guidance High End Drivers
      Q: Will reaching the high end of guidance be broad-based?
      A: Hitting the high end depends on backlogged deliveries in the second half due to pushouts from Q1. Front-end semiconductor markets aren't expected to pick up until 2026, but improvements are anticipated as markets stabilize.

    5. Pipeline Cancellations
      Q: Are you seeing any cancellations in your pipeline?
      A: There are no cancellations, but some customers are switching products; it's mainly a timing issue.

    6. Life Sciences Orders
      Q: Were strong Life Sciences orders driven by few customers?
      A: The strong orders were broad-based, significantly driven by induction heating solutions, showing good momentum despite front-end semi decline.

    7. Competitive Position
      Q: Any changes in your competitive landscape?
      A: The company is satisfied with its strong competitive position, continues to add value for customers through expertise and innovation.

    8. Segment Gross Margins
      Q: Can you provide historical gross margins by segment?
      A: The company doesn't manage segments at the gross margin level, focusing instead on divisional operating income, and will provide required reporting but not additional details.