TSX:HPS.A - Post Discussion
Post by
retiredcf on Aug 07, 2023 10:10am
Reaction to Brief SP Decline
For the second quarter of 2023, HPS.A reported record sales of $172 million, up 25.4% year-over-year. Net income of $13.3 million rose 105% compared to the same quarter of 2022. Earnings per share came in at $1.12 and order backlog increased 44.1%. We think this was a solid quarter with solid sales and improvement in margins. Cash generated by operating activities decreased slightly. Given the jump in sales volume, management expects increased working capital needs for 2023 and higher capex in the second half of the year. The stock has had an extremely strong rally over the past year and we think the drop today comes mostly from some profit-taking, with some concern on higher working capital needs. At the time of the answer, the decline is down to just 1% of the opening price, and it is a pretty ugly market day overall. We would not change our positive viewpoint here. (5iResearch)
Be the first to comment on this post