Q: Gentlemen;
Can you comment on the recent earnings report? A very strong reaction to the report this morning.
Can you comment on the recent earnings report? A very strong reaction to the report this morning.
5i Research Answer:
HPS.A is having its biggest up move in 17 years. EPS of $1.56 missed estimates of $1.60; revenue of $218.3M matched estimates. However, sales rose 13% and the backlog increased 28%. It was the second-best quarter for shipments ever, and the company noted it received "substantial orders' just after the quarter ended. Data centre activity 'accelerated'. Orders received post-quarter added 53% to the closing backlog. Tariffs and inflation continue to pressure earnings, but it is clear that business is now surging. Investors are looking forward. Share based compensation was less of a factor this quarter. The oulook and backlog surge is most impressive.