M-tron Industries, Inc. MPTI or MtronPTI, is scheduled to report third-quarter 2024 (ended Sept. 30, 2024) results on Nov. 13, after the closing bell.

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This designer and manufacturer of highly engineered electronic components reported better-than-expected results for the third quarter of 2024. The company’s earnings per share (EPS) and revenues beat the Zacks Consensus Estimate by 26% and 5.4%.

On a year-over-year basis, EPS grew 34% and revenues increased 16.4%, driven by defense sector demand, with gross margin improving to 46.6% from 41.6% a year ago. Adjusted EBITDA rose 30.7% to $2.52 million. The company's growth since its 2022 IPO was emphasized by continued revenue growth, higher new orders, and a positive order backlog trend.

MtronPTI surpassed the consensus mark in three of the last four quarters. The average surprise over this period is 9.2%.

M-tron Industries, Inc. Price and EPS Surprise

M-tron Industries, Inc. price-eps-surprise | M-tron Industries, Inc. Quote

How Are Estimates Placed for MPTI Stock?

The Zacks Consensus Estimate for the third-quarter EPS has remained unchanged at 54 cents over the past 60 days. The estimated figure indicates a 5.3% decline from the year-ago reported figure. Nonetheless, the consensus mark for revenues is $12.2 million, indicating 12% year-over-year growth.

Factors Influencing MtronPTI’s Q3 Performance

The company is seeing positive momentum owing to strong shipments of defense program products and solutions. The company’s third quarter is likely to have gained from strategic investments in the defense sector, new products entering volume production and improved production efficiencies, supported by ongoing investments in personnel and equipment.

The company is strategically positioned to execute its organic growth plans, emphasizing key sectors with substantial potential. MPTI focuses on areas, such as space and satellite technologies, radar applications and electronic warfare solutions, particularly with products like the e-Vibe series OCXOs, designed for stability under dynamic conditions. This characteristic is likely to have contributed to quarterly results.

Overall, MPTI’s strong operational footing and growth trajectory, particularly in its defense and aerospace markets, with continued expansion across high-demand areas like radar, satellite, and electronic warfare applications, are major tailwinds.

However, the company has been experiencing cost pressures primarily due to increased engineering, selling, and administrative expenses, attributed to increased investments in research and development, higher sales commissions due to revenue growth, and elevated administrative and corporate expenses aligned with overall business expansion. This is likely to have affected the company’s profitability.