Hammond Power Solutions Inc T.HPS.A

People say

[sumpineh]

Never fall in love with a stock. Obviously they never heard of HPS.I know, some day there will be a pullback. But every time that happens it just bounces back higher. Earnings out next week might be an opportunity for new entrants. It doesn't seem possible that the SP can keep this pace up.GLTA

[colourama]

I think this gets a haircut post-earnings as sky high expectations will be disappointed even with great results. But still an outstanding company.

[sumpineh]

I agreed with your post when I read it and also last night when the earnings came out. But very happy to have been wrong.(so far) The day is not over yet but the SP certainly has soared on the numbers.GLTA

[TimeScape]

Estimate was for $1.24 eps, they came in at $1.68. Big beat vs estimates. Revenue estimate was $183 m, they came in at $187 m.   Plus the divvy went from 15 cents to 27.5 cents. Q4 earnings rate roughly $6.75 annualized, so maybe they make $8+ this year, meaning it is still trading at less than 20 times current year estimated earnings. 

[blindpig]

Adjusted EBITDA was $117 m vs $96 m reported due to stock options/DSU charges as a result of the large share price increase.. I calculate adjusted earnings at $6.5 a share assuming 30% tax on the additional EBITDA. 

[leafs2018]

There's some seasonality to the business as can be seen by the quarterly trends for last few years so not sure it's appropriate to use Q4 for full year earnings.  Also only 2 analysts cover it so not a great sample size.  But do agree that adjusting the quarter for stock compensation, it looks good.  Good growth in other markets (India) if growth in the US moderating