Engineered materials manufacturer Rogers (NYSE: ROG) announced better-than-expected revenue in Q2 CY2026, with sales up 6.9% year on year to $216.8 million. On top of that, next quarter’s revenue guidance ($238 million at the midpoint) was surprisingly good and 5.6% above what analysts were expecting. Its GAAP profit of $0.76 per share was 16.9% below 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

Reviewing a company’s long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.

With $834.8 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 $834.8 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 annualized revenue declines of 1.6% over the last two years align with its five-year trend, suggesting its demand has consistently shrunk.

This quarter, Rogers reported year-on-year revenue growth of 6.9%, and its $216.8 million of revenue exceeded Wall Street’s estimates by 0.8%. Company management is currently guiding for a 10.2% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 8.6% over the next 12 months, an improvement versus the last two years. This projection is healthy and suggests its newer products and services will fuel better top-line performance.

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Adjusted Operating Margin

Rogers was profitable over the last five years but held back by its large cost base. Its average adjusted operating margin of 8.7% was weak for a business services business.

Looking at the trend in its profitability, Rogers’s adjusted operating margin decreased by 2.3 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.

This quarter, Rogers generated an adjusted operating margin profit margin of 9.2%, up 2.9 percentage points year on year. This increase was a welcome development and shows it was more efficient.

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 16.7% 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 expanded this quarter but declined by 2.3 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 more recent period because it can provide insight into an emerging theme or development for the business.

For Rogers, its two-year annual EPS declines of 25.1% show it’s continued to underperform. These results were bad no matter how you slice the data.

In Q2, Rogers reported EPS of $0.76, up from negative $4 in the same quarter last year. Despite growing year on year, this print missed analysts’ estimates. Over the next 12 months, Wall Street expects Rogers’s full-year EPS to grow 124% from $1.75 to $3.92.

Key Takeaways from Rogers’s Q2 Results

We were impressed by Rogers’s optimistic revenue guidance for next quarter, which blew past analysts’ expectations. We were also happy its revenue narrowly outperformed Wall Street’s estimates. On the other hand, its EPS missed. Zooming out, we think this was a mixed quarter. The stock remained flat at $119.14 immediately following the results.

So do we think Rogers is an attractive buy at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).