Headline: "Rogers Shares Dip Despite Surpassing Q3 Earnings Expectations Due to Weak Q4 Outlook"

Rogers Corporation (NYSE:ROG) announced mixed third-quarter results, with earnings surpassing expectations while revenue fell short. The company's weak fourth-quarter forecast led to a 4% drop in shares during after-hours trading. The advanced materials and components manufacturer reported adjusted earnings of $0.98 per share, exceeding the analyst estimate of $0.85. However, revenue came in at $210.3 million, below the consensus estimate of $220.1 million, marking a 1.8% decline from the previous quarter.

Rogers' third-quarter sales were impacted by softer demand in the electric vehicle (EV) and hybrid electric vehicle (HEV) markets, as well as a lower seasonal peak in portable electronics sales. The company's Advanced Electronics Solutions (AES) unit saw a 2.9% drop in net sales, while the Elastomeric Material Solutions (EMS) unit experienced a 0.5% decrease.

Despite the revenue shortfall, Rogers managed to increase its gross margin to 35.2% from 34.1% in the previous quarter, mainly due to a favorable product mix. The company also reduced its selling, general, and administrative expenses by $5.8 million compared to the prior quarter.

Looking ahead, Rogers provided a disappointing fourth-quarter forecast, predicting earnings per share between $0.30 and $0.60, significantly below the analyst consensus of $0.83. The company expects sales to decline due to typical seasonality and deferred orders as customers manage year-end inventory levels.

Colin Gouveia, President and CEO of Rogers, commented, "We continue to execute our focused strategy to position Rogers for the long term, as highlighted by the inauguration of our new power substrate factory in China, targeting growth opportunities in the EV/HEV, renewable energy, and industrial markets."