What Happened?
Shares of engineered materials manufacturer Rogers (NYSE: ROG) fell 3.7% in the afternoon session after the company reported disappointing second-quarter 2025 financial results, which included a significant net loss and a miss on earnings expectations. The company posted a net loss of $73.6 million, or $4.00 per share, for the quarter. This loss included $71.8 million in non-cash impairment charges and $4.3 million in restructuring costs, largely related to its AES curamik® business. While revenue grew from the previous quarter, adjusted earnings per share of $0.34 missed analyst forecasts. Furthermore, sales declined 5.3% compared to the same period last year, which reflected lower demand from the electric vehicle and wireless infrastructure markets.
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What Is The Market Telling Us
Rogers’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 18 days ago when the stock dropped 7.6% on the news that the company announced the immediate departure of its President and CEO, Colin Gouveia. The company announced that Gouveia, who also resigned from the Board of Directors, had been replaced by Ali El-Haj on an interim basis while a search for a permanent successor is conducted.
Sudden changes in high-level leadership, particularly at the CEO position, often create uncertainty among investors, which can lead to a stock sell-off. The market's reaction revealed concern over the unexpected transition and the potential for shifts in company strategy. The board has initiated a search for a permanent replacement and will consider both internal and external candidates.
Rogers is down 36.4% since the beginning of the year, and at $62.94 per share, it is trading 46% below its 52-week high of $116.63 from July 2024. Investors who bought $1,000 worth of Rogers’s shares 5 years ago would now be looking at an investment worth $515.86.
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