We have comments posted on HPS.A's results, but there are a few factors that we think can help the stock going forward. Management noted that a weak US dollar relative to the CAD in Q1 negatively impacted its US and Mexico sales, which going forward could be offset by the strong US dollar so far in the start of Q2. Canadian sales saw strong growth due to commercial construction, EV charging, data centers, and we think this can further strengthen in the coming quarters, and its Indian sales were mostly negatively impacted by a tough comp from Q1 2023 due to the recognition of $7.6M of revenue for an order produced and shipped in Q4 2022. The company can also benefit from raising prices in Q2.
The stock is lower this morning, and while the results were not great, we continue to like the name. We feel that it may take a few weeks or more to settle into a new price range. We would be comfortable buying on dips.