Profit and revenue exceed expectations
- ATS reported better-than-expected rise in profit and revenue for Q3
- Net income of CAD 47.2 million, beating analyst expectations
- Revenue rose 16% to CAD 752 million
- Order books fell nearly 32% compared to last year
- Order backlog decreased by 11% to CAD 1.91 billion
- ATS expects to convert 36% to 39% of order backlog to revenue in Q4
ATS, the Canadian factory automation systems company, has reported a better-than-expected rise in profit and revenue for its fiscal third quarter. The company posted a net income of CAD 47.2 million, or CAD 0.48 a share, compared to CAD 29.2 million, or CAD 0.32 a share, in the same period last year. Adjusted earnings were CAD 0.65 a share. Revenue also saw a significant increase, rising 16% to CAD 752 million, beating analyst expectations. However, order books fell nearly 32% compared to the previous year, reaching CAD 668 million. This decline is largely attributed to the inclusion of several large, strategic order bookings in the previous year. Additionally, the order backlog decreased by 11% to CAD 1.91 billion. Looking ahead to the fiscal fourth quarter, ATS expects to convert about 36% to 39% of the order backlog to revenue.
Public Companies: ATS (N/A)
Private Companies:
Key People:
Factuality Level: 8
Justification: The article provides specific financial figures and compares them to analyst expectations, indicating a higher level of factuality. However, it does not provide any sources or additional context to verify the information.
Noise Level: 7
Justification: The article provides relevant financial information about ATS’s fiscal third quarter performance, including profit, revenue, and earnings per share. It also mentions the decline in order books and backlog. However, it lacks analysis or insights into the long-term trends or consequences of these results. It also does not provide any evidence or data to support its claims or predictions for the fiscal fourth quarter.
Financial Relevance: Yes
Financial Markets Impacted: The financial markets that may be impacted by this news article are the Canadian stock market and the manufacturing sector.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The news article reports on the financial performance of ATS, a Canadian factory automation systems company. While the company’s profit and revenue for the fiscal third quarter exceeded expectations, there is no mention of any extreme events or events that would have a significant impact on financial markets or companies.
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