ATS Reports Better-Than-Expected Q3 Results

By Adriano Marchese

ATS, the Canadian factory automation systems company, announced its fiscal third-quarter results, exceeding profit and revenue expectations. The company's core units performed strongly during this period.

Profit and Revenue

ATS reported a net income of 47.2 million Canadian dollars ($35 million), or C$0.48 a share, for the period ending December 31. This represents an increase from the prior-year period, where the net income was C$29.2 million, or C$0.32 a share.

Adjusted earnings were C$0.65 a share, outperforming the analysts' prediction of C$0.64 a share.

Revenue also experienced significant growth, rising by 16% to C$752 million. Analysts had forecasted a rise to C$732.2 million.

Order Books and Backlog

The company's order books fell by nearly 32% compared to the previous year, reaching C$668 million in the current period. This decrease is primarily attributed to the inclusion of large strategic order bookings in the prior year.

Order backlog decreased as well, experiencing an 11% decline to C$1.91 billion.

Outlook for Q4

ATS anticipates converting approximately 36% to 39% of its order backlog into revenue during the fiscal fourth quarter.