CTS Corporation (NYSE:CTS) Q3 2024 Earnings Conference Call October 29, 2024 10:00 AM ET
Company Participants
Kieran O'Sullivan - President & CEO
Ashish Agrawal - CFO
Conference Call Participants
John Franzreb - Sidoti & Co.
Hendi Susanto - Gabelli Funds
Operator
Hello everyone, and welcome to the CTS Corporation Third Quarter 2024 Earnings Call. My name is Nadia, and I'll be coordinating the call today. [Operator Instructions]. I will now hand over to your host, Kieran O'Sullivan, President and CEO, to begin. Kieran, please go ahead.
Kieran O'Sullivan
Good morning, and thanks for joining us today. Let's start with some key highlights for the quarter. First, third quarter saw revenue of $132 million and adjusted earnings per share of $0.63. Second, we continue to execute on our diversification strategy with revenue from diversified markets now accounting for approximately 52% of overall revenue in the quarter. Diversification will continue to be a strategic priority, and we expect further progress next year. Third and finally, we expanded overall adjusted gross margin by 416 basis points in the quarter, including foreign exchange favorability.
We are excited by the momentum in medical, where our products enable critical ultrasound diagnosis, and our technology enables minimally invasive procedures, helping improve patient experience and save lives. We have accelerated our defense growth with the SyQwest acquisition, which moves us up the value chain for sensors, transducers and subsystems, and longer-term, has the capability to expand into new products. Demand across the industrial market continues to rebuild slowly. In transportation, where we are navigating near-term market softness, interest in our eBrake product continues with a pre-development award for a premium European OEM and additional wins in electrification with current sensing. And more recently, in early October, we added a new customer in North America for an accelerator modules on a premium truck platform. Ashish will take us through the safe harbor statement. Ashish?
Ashish Agrawal
I would like to remind our listeners that this conference call contains forward-looking statements. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Additional information regarding these risks and uncertainties is contained in the press release issued today, and more information can be found in the company's SEC filings. To the extent that today's discussion refers to any non-GAAP measures under Regulation G, the required explanations and reconciliations are available with today's earnings press release and supplemental slide presentation which can be found in the Investors section of the CTS website. I will now turn the discussion back to our CEO, Kieran O'Sullivan.