G&M - This morning's market movers H2O Innovation Inc. (
) saw gains with the premarket release of
stronger-than-anticipated second-quarter results.
The Quebec City-based company announced revenue rose 52 per cent year-over-year, to $63.9-million, exceeding the Street’s forecast of $56.6-million.
“Organically, revenue rose a spectacular 26.8 per cent thanks to high demand for specialty chemicals and parts, new and expanded O&M mandates, robust demand from capital equipment projects and the gradual implementation of price increases,” said Desjardins Securities analyst Frederic Tremblay in a note. “This was HEO’s fifth consecutive quarter of double-digit organic growth. In addition, the $8.3million contribution from acquisitions (JCO, EC, Leader) was in line with our forecast of $8.0-million.
“Adjusted EBITDA of $6.5-million beat our forecast of $5.2-million and consensus of $5.1-million. The beat was primarily driven by HEO’s significant top-line strength, and adjusted EBITDA margin of 10.2 per cent was above our estimate of 8.9 per cent. Margin was above that last year and last quarter as pricing and cost-related actions mitigated the effects of inflation (eg wages, raw materials).”