EPS was $1.68 vs estimates of $1.24; revenue of $186.9M was 2% better than estimates. The dividend was increased 83% (!). Sales rose nearly 30%. Net income rose 9.2% for the quarter and 41% for the year. Gross margin was 32.5%. Prior year capacity additions are paying off. Backlog rose 20% year over year but did decline 3% from Q3. With faster execution and delivery we would not consider this to be much of a negative, but it might get flagged by some investors. HPS noted 'growth rates are moderating in some areas, but EV charging and data centres remain strong'. The moderating comment may cause some investors to take profits, but it does seem as if the company is taking a conservative stance here, managing expectations after such a huge run. SG&A costs fell slightly as a percentage of sales. We are comfortable here. No doubt the stock will bounce around as investors adjust and take profits. But business is good and the giant dividend increase is clearly a sign of confidence by the company. If we look to 2025 EPS consensus it is 20X earnings, which we would still consider attractive for buyers.
5i Research Answer: