CPS Technologies Q3 revenue rises on increased demand, production

By Reuters News


Overview

  • US advanced materials maker's fiscal Q3 revenue rose slightly yr/yr to a company record

  • Fiscal Q3 adjusted EPS rose to $0.02 from $0.01 a year ago

  • Company secured new defense and semiconductor orders, signed lease to double production space


Outlook

  • Company expects continued growth and higher financial results heading into fiscal 2027

  • Company expects full buildout of new facility to continue into second half of 2027

  • Company has secured significant volume orders from major customer for deliveries into fiscal 2027


Result Drivers

  • HIGHER DEMAND - Co attributed record Q3 revenue and improved gross margin to increased demand and production

  • PRODUCTION EXPANSION - Co signed lease for larger facility to expand production and efficiency

  • DEFENSE CONTRACT ORDER - Co received first defense contractor order for tungsten alloy components using proprietary process


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$8.90 mln

$8.50 mln (1 Analyst)

Q3 EPS

$0.02

Q3 Net Income

$346,757

Q3 Gross Margin

20.90%

Q3 Gross Profit

$1.90 mln

Q3 Operating Income

$357,747


Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the electrical components & equipment peer group is "buy"

  • Wall Street's median 12-month price target for CPS Technologies Corp is $6.00, about 69.5% above its November 2 closing price of $3.54

  • The stock recently traded at 69 times the next 12-month earnings vs. a P/E of 32 three months ago


Reuters Recommended Reads

  • Nov 3 - EnPro beats Q3 sales, profit estimates on semiconductor demand, outlook raised

  • Nov 2 - Israel's Tower Semi Q3 revenue growth of 33% tops estimates, sees faster Q4 growth

  • Nov 2 - Guerrilla RF Q3 revenue rises 61% on aerospace & defense demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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