Hammond Power Solutions Full Year 2024 Earnings: EPS Beats Expectations

Hammond Power Solutions (TSE:HPS.A) Full Year 2024 Results

Key Financial Results

• Revenue: CA$788.3m (up 11% from FY 2023).
• Net income: CA$71.5m (up 13% from FY 2023).
• Profit margin: 9.1% (up from 8.9% in FY 2023). The increase in margin was driven by higher revenue.
• EPS: CA$6.01 (up from CA$5.33 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Hammond Power Solutions EPS Beats Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 3.4%.

The primary driver behind last 12 months revenue was the United States & Mexico segment contributing a total revenue of CA$534.9m (68% of total revenue). Notably, cost of sales worth CA$530.1m amounted to 67% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to CA$83.4m (45% of total expenses). Explore how HPS.A's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Electrical industry in Canada.

Performance of the Canadian Electrical industry.

The company's shares are up 9.0% from a week ago.

Valuation

Our analysis of Hammond Power Solutions based on 6 different valuation metrics shows it might be undervalued. To explore our complete evaluation click here and get an understanding of what analysts are thinking about the company's future.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.