ATS Reports Strong Profit and Revenue Growth

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.