NPI recently released Q3 earnings results where EPS beat analysts’ estimates of $0.13, coming in at $0.14. Revenue beat estimates of $493.76M coming in at $513.29M but displayed a -7.66% year-over-year decline. Adjusted EBITDA also beat consensus estimates of $252M coming at $267M. NPI has a solid cash balance at $833.6M, but total debt remains very high at $8B. NPI put together a solid Q3, but this does not do too much for what has been an overall weak FY2023. Analysts believe that as NPI focuses on projects under construction and de-risking key milestones, there could be long-term potential that the markets could realize. NPI has some risks, but the overall sector was hit hard this year, so a 2024 bounce back is possible. We would be OK holding to see how it reacts in a differing (more positive) environment.
SPB recorded a Q3 EPS loss of ($0.46), coming in below analysts estimates of ($0.27). Revenue also missed forecasts of $726M, coming in at $531M displaying a +4.02% increase year-over-year. Despite missing estimates in Q3, SPB, maintained its 2023 EBITDA guidance and iterated that this quarter is typically worse cyclically. EPS is expected so see good growth in 2024. The Certarus acquisition is performing well for SPB, and similarly to NPI a more friendly interest rate environment will help the stock going forward.