Gorman-Rupp Q3 adjusted EPS rises 65%, beats expectations
Overview
US pump maker's Q3 revenue rose 12% yr/yr to record high
Adjusted EPS climbed 65% yr/yr to $0.86, beating analyst's expectations
Company says margin gains driven by higher sales, cost leverage, and lower one-time costs
Outlook
Company plans 2026 capital expenditures of $22 mln to $24 mln
Company says incoming orders and backlog remain healthy entering Q4
Result Drivers
VOLUME AND PRICE GAINS - Co said sales growth was driven by increased volumes and price increases taken in Q1
MARKET EXPANSION - Co cited growth in agriculture, construction, industrial, and fire suppression markets, with improvements across Fill-Rite sales channels and increased international sales
LOWER INTEREST EXPENSE - Co said reduced interest expense contributed to earnings growth, mainly due to lower outstanding debt
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $193.30 mln | $187.08 mln (2 Analysts) |
Q3 Adjusted EPS | Beat | $0.86 | $0.70 (3 Analysts) |
Q3 EPS | $0.86 | ||
Q3 Net Income | $22.70 mln | ||
Q3 Adjusted EBITDA | Beat | $41.80 mln | $38.007 mln (2 Analysts) |
Q3 Gross Margin | 33.40% | ||
Q3 Gross Profit | $64.50 mln | ||
Q3 Operating Income | $33.90 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for The Gorman-Rupp Company is $80.00, about 14.1% above its October 22 closing price of $70.13
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 33 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.)