ATS reports strong profit and revenue growth for second fiscal quarter. Impressive financial results driven by foreign-exchange transactions and contributions from acquired companies. Slight decline in order bookings but promising growth in order bac...
Troy D. Hanson
November 08, 2023
ATS, the Canadian automation systems company, has announced its financial results for the second fiscal quarter, revealing a significant increase in profit and revenue. The company's success can be attributed to foreign-exchange transactions and the growing contribution from recently acquired companies.
Impressive Profit Margin Increase
ATS reported a net income of 50.7 million Canadian dollars ($36.8 million), or C$0.51 per share, for the three months ending on October 1. This represents a significant rise from the C$29.5 million, or C$0.32 per share, recorded in the same quarter last year.
Surpassing Analyst Expectations
Adjusted earnings per share also saw an upward trend, reaching C$0.63. Although analysts had projected C$0.64 per share, the company's performance remained strong.
Robust Revenue Growth
ATS achieved a remarkable 25% increase in revenue, reaching C$735.7 million. Analysts had predicted a rise to C$717.9 million, making this an impressive beat.
Contributions to Revenue Growth
Organic revenue, which excludes the contributions from acquired companies and foreign-exchange transactions, played a significant role in driving the growth, amounting to C$96.6 million or 16.4% of overall revenue growth. Additionally, revenue earned from acquired companies accounted for C$14.5 million.
Strong Currency Impact
ATS also benefited from the strength of the euro and the U.S. dollar, which resulted in a revenue boost of C$35.7 million.
Order Bookings and Backlog
While order bookings experienced a slight decline of 7.7% compared to the previous year, reaching C$742 million, the order backlog showed promising growth of more than 12%, amounting to C$2.02 billion.
In conclusion, ATS has reported impressive financial results for the second fiscal quarter, including a notable increase in profit and revenue. The company's success can be attributed to foreign-exchange transactions, contributions from acquired companies, and the positive impact of strong currencies.