Perma-Pipe International (NASDAQ:PPIH) Posts Earnings Results, Misses Expectations By $0.24 EPS

Perma-Pipe International (NASDAQ:PPIH) posted its quarterly earnings results on Wednesday. The industrial products company reported $0.31 EPS for the quarter, missing the consensus estimate of $0.55 by ($0.24), FiscalAI reports. The company had revenue of $59.57 million for the quarter, compared to analyst estimates of $51.20 million. Perma-Pipe International had a return on equity of 15.92% and a net margin of 6.47%.

Here are the key takeaways from Perma-Pipe International’s conference call:

• Second-quarter sales rose 24% to $59.6 million, while net income attributable to common stock increased to $2.5 million, or $0.31 per diluted share, despite a $3.9 million accounts-receivable charge.
• Backlog grew to $142.3 million at quarter-end after $67.8 million of new orders, with management expecting approximately 40%–50% of backlog to convert to revenue in the third quarter.
• Management cited growth investments and market opportunities, including ramping Ohio and Qatar facilities, strong leak-detection demand, Saudi Aramco qualification, and a new credit facility that expands capacity for larger projects and potential acquisitions.
• First-half net income declined to $4.3 million from $5.8 million, while gross margins fell to approximately 29% from 33% due partly to product mix and Ohio startup costs; management also noted higher shipping and commodity costs from Middle East disruptions.
• The proposed Welspun joint venture in Jordan could provide access to major water, energy, and reconstruction projects, but the National Water Carrier opportunity is not yet a definitive award and is therefore excluded from backlog.

Perma-Pipe International Stock Up 1.5%

Shares of PPIH opened at $29.55 on Thursday. Perma-Pipe International has a 12 month low of $21.96 and a 12 month high of $36.72. The stock has a market cap of $240.12 million, a price-to-earnings ratio of 17.49 and a beta of 0.59. The company has a 50-day moving average price of $26.11 and a two-hundred day moving average price of $29.02. The company has a quick ratio of 2.02, a current ratio of 2.31 and a debt-to-equity ratio of 0.21.

Institutional Trading of Perma-Pipe International

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Invesco Ltd. acquired a new stake in shares of Perma-Pipe International in the 4th quarter valued at $2,914,000. Empowered Funds LLC raised its stake in shares of Perma-Pipe International by 10.9% during the fourth quarter. Empowered Funds LLC now owns 27,359 shares of the industrial products company’s stock worth $831,000 after buying an additional 2,682 shares during the last quarter. Quadrature Capital Ltd acquired a new position in Perma-Pipe International in the fourth quarter valued at approximately $212,000. Millennium Management LLC boosted its stake in Perma-Pipe International by 265.1% in the fourth quarter. Millennium Management LLC now owns 42,780 shares of the industrial products company’s stock valued at $1,299,000 after acquiring an additional 31,064 shares during the last quarter. Finally, Bridgeway Capital Management LLC grew its holdings in Perma-Pipe International by 4.3% during the 4th quarter. Bridgeway Capital Management LLC now owns 64,769 shares of the industrial products company’s stock worth $1,966,000 after acquiring an additional 2,682 shares during the period. Institutional investors and hedge funds own 28.43% of the company’s stock.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Perma-Pipe International in a research note on Friday, August 14th. One investment analyst has rated the stock with a Hold rating, Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $36.00.

Perma-Pipe International Company Profile

Perma-Pipe International Holdings Ltd. is a publicly traded company on the NASDAQ under the symbol PPIH that specializes in the design, manufacture and installation of prefabricated piping systems. Its core business revolves around factory-assembled thermal insulation and corrosion protection solutions, including pre-insulated pipe, heat tracing, field-applied jackets and specialty spool pieces. These engineered systems are custom-built to industry specifications and are used to maintain temperatures, control heat loss and extend the life of critical piping infrastructure.

The company’s products and services serve a diverse range of end markets, with primary focus on oil and gas production, petrochemical processing, power generation, district energy, and industrial facilities.