Rogers Corporation (NYSE:ROG) Q3 2023 Earnings Conference Call October 26, 2023 5:00 PM ET

Company Participants

Steve Haymore - Director of Investor Relations

Colin Gouveia - President and CEO

Ram Mayampurath - Senior Vice President and CFO

Conference Call Participants

Daniel Moore - CJS Securities

Craig Ellis - B. Riley Securities

Operator

Good afternoon. My name is Shamali and I will be your conference operator today. At this time, I would like to welcome everyone to the Rogers Corporation Q3 2023 Earnings Conference Call.

I will now turn the call over to your host, Mr. Steve Haymore, Director of Investor Relations. Mr. Haymore, you may begin.

Steve Haymore

Good afternoon, everyone, and welcome to the Rogers Corporation third quarter 2023 earnings conference call. The slides for today's call can be found on the Investors section of our website, along with the news release that was issued earlier today.

Please turn to Slide 2. Before we begin, I'd like to note that statements in this conference call that are not strictly historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and should be considered as subject to the many uncertainties that exist in Rogers' operations and environment. These uncertainties include economic conditions, market demand, and competitive factors. Such factors could cause actual results to differ materially from those in any forward-looking statements made today.

Please turn to Slide 3. The discussions during this conference call will also reference certain financial measures that were not prepared in accordance with generally accepted accounting principles. Reconciliations of those non-GAAP financial measures, the most directly comparable GAAP financial measures can be found in the slide deck for today's call.

Turning to Slide 4. With me today is Colin Gouveia, President and CEO; and Ram Mayampurath, Senior Vice President and CFO.

I will now turn the call over to Colin.

Colin Gouveia

Thanks, Steve. Good afternoon to everyone, and thank you for joining us today. Before we turn to the next slide, I'll give a quick summary of our performance during the quarter. In Q3, we again made good progress towards the cost improvement targets we set for this year. Gross margin was 35.1%, which was above the high end of our guidance range and exceeded the target we set in Q1.

This margin expansion and lower adjusted operating expenses drove adjusted EPS to the high end of our guidance range and contributed to the stronger cash flow generated in the quarter. We achieved these margin improvements despite continued global economic headwinds impacting market demand. Later in the presentation, I will elaborate more on these market headwinds and our Q3 results. But first, I want to highlight the progress we are making to strengthen the company as we execute on our restore initiatives introduced during our Q1 Investor Day.