Pason Systems Second Quarter 2024 Earnings: Revenues Beat Expectations, EPS Lags

Pason Systems (TSE:PSI) Second Quarter 2024 Results

Key Financial Results

• Revenue: CA$95.9m (up 13% from 2Q 2023).
• Net income: CA$10.9m (down 57% from 2Q 2023).
• Profit margin: 11% (down from 30% in 2Q 2023). The decrease in margin was driven by higher expenses.
• EPS: CA$0.14 (down from CA$0.32 in 2Q 2023).

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

Pason Systems Revenues Beat Expectations, EPS Falls Short

Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) missed analyst estimates by 31%.

Looking ahead, revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 5.4% decline forecast for the Energy Services industry in Canada.

Performance of the Canadian Energy Services industry.

The company's shares are down 9.7% from a week ago.

Risk Analysis

It's necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Pason Systems (at least 1 which can't be ignored), and understanding them should be part of your investment process.

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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.