Canada's Hammond Power Solutions Q3 sales up 104%, beats estimates
Overview
Canada power electronics supplier's Q3 sales more than doubled, beating analyst expectations
Adjusted EPS for Q3 beat analyst expectations, reflecting strong operational performance
Growth driven by data centre demand and first full quarter of AEG integration
Outlook
Company did not provide specific financial guidance for the current quarter or full year
Result Drivers
DATA CENTRE DEMAND - Co said growth in US Power Magnetics sales was driven by increased shipments to data centres
AEG INTEGRATION - Q3 was first full quarter including AEG results, contributing to consolidated sales and segment mix
MARGIN EXPANSION - Co attributed higher gross margin to pricing actions, increased factory output, more custom products and improved efficiency, per CFO Richard Vollering
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | C$446 mln | C$396.34 mln (8 Analysts) |
Q3 Adjusted EPS | Beat | C$3.13 | C$2.63 (5 Analysts) |
Q3 EPS | C$2.33 | ||
Q3 Gross Margin | 34.40% | ||
Q3 Basic EPS | C$2.33 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the heavy electrical equipment peer group is "buy"
Wall Street's median 12-month price target for Hammond Power Solutions Inc. is C$380.00, about 55.1% above its October 29 closing price of C$245.02
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 36 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)