Engineered materials manufacturer Rogers (NYSE: ROG) met Wall Street’s revenue expectations in Q1 CY2026, with sales up 5.2% year on year to $200.5 million. The company expects next quarter’s revenue to be around $215 million, coming in 1.9% above analysts’ estimates. Its non-GAAP profit of $0.75 per share was 9.8% above analysts’ consensus estimates.

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Company Overview

With roots dating back to 1832, making it one of America's oldest continuously operating companies, Rogers (NYSE: ROG) designs and manufactures specialized engineered materials and components used in electric vehicles, telecommunications, renewable energy, and other high-performance applications.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years.

With $820.8 million in revenue over the past 12 months, Rogers is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels.

As you can see below, Rogers struggled to increase demand as its $820.8 million of sales for the trailing 12 months was close to its revenue five years ago. This shows demand was soft, a rough starting point for our analysis.

Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Rogers’s recent performance shows its demand remained suppressed as its revenue has declined by 3.3% annually over the last two years.

This quarter, Rogers grew its revenue by 5.2% year on year, and its $200.5 million of revenue was in line with Wall Street’s estimates. Company management is currently guiding for a 6% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 4.8% over the next 12 months. Although this projection indicates its newer products and services will fuel better top-line performance, it is still below the sector average.

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Adjusted Operating Margin

Adjusted operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. It also removes various one-time costs to paint a better picture of normalized profits.

Rogers was profitable over the last five years but held back by its large cost base. Its average adjusted operating margin of 9% was weak for a business services business.

Analyzing the trend in its profitability, Rogers’s adjusted operating margin decreased by 5.6 percentage points over the last five years. Rogers’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers.

In Q1, Rogers generated an adjusted operating margin profit margin of 5.3%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Sadly for Rogers, its EPS declined by 13.9% annually over the last five years while its revenue was flat. This tells us the company struggled because its fixed cost base made it difficult to adjust to choppy demand.

We can take a deeper look into Rogers’s earnings to better understand the drivers of its performance. As we mentioned earlier, Rogers’s adjusted operating margin was flat this quarter but declined by 5.6 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For Rogers, its two-year annual EPS declines of 9.2% show it’s still underperforming. These results were bad no matter how you slice the data.

In Q1, Rogers reported adjusted EPS of $0.75, up from $0.27 in the same quarter last year. This print beat analysts’ estimates by 9.8%. We also like to analyze expected EPS growth based on Wall Street analysts’ consensus projections, but there is insufficient data.

Key Takeaways from Rogers’s Q1 Results

We were impressed by how significantly Rogers blew past analysts’ EPS guidance for next quarter expectations this quarter. We were also glad its revenue guidance for next quarter exceeded Wall Street’s estimates. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 2.8% to $132.87 immediately following the results.

Rogers may have had a good quarter, but does that mean you should invest right now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).