ATS (NYSE:ATS) Announces Earnings Results

ATS (NYSE:ATS) released its quarterly earnings data on Wednesday. The company reported $0.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.30 by $0.04, Zacks reports. The company had revenue of $553.81 million during the quarter, compared to the consensus estimate of $722.96 million. ATS had a negative net margin of 0.08% and a positive return on equity of 8.82%. ATS’s revenue for the quarter was up 16.7% on a year-over-year basis. During the same period in the previous year, the firm earned $0.32 earnings per share.

Here are the key takeaways from ATS’s conference call:

• New CEO Doug Wright is prioritizing ABM/lean execution, margin expansion and disciplined capital allocation, signaling a leadership change focused on operational improvement.
• Q3 results showed strong demand with order bookings of $821M, revenue of $761M (up 16.7% YoY), adjusted operating earnings of ~$80M, and a backlog of approximately $2.1B.
• End-market momentum is broadening — life sciences (Q3 revenues $391M, backlog $1.1B) remains a key growth driver while energy backlog hit a record (CAD 296M) and consumer/warehouse automation also posted record backlog levels.
• Gross margin fell to 29.6% (down 111 bps) due to program mix, the company increased restructuring charges to ~CAD 20M, and net debt/adj. EBITDA sits at ~3x, indicating near-term margin and cost-pressure risks.
• Management is embedding the services business into operating units to grow recurring, aftermarket revenue and says it will remain disciplined on M&A, targeting acquisitions that improve margins, aftermarket mix or core capabilities.

ATS Stock Down 2.9%

Shares of ATS stock traded down $0.87 during trading on Thursday, reaching $29.38. The company had a trading volume of 47,520 shares, compared to its average volume of 148,735. The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.34 and a current ratio of 1.63. ATS has a fifty-two week low of $20.90 and a fifty-two week high of $32.73. The firm’s fifty day moving average is $28.15 and its 200-day moving average is $27.74. The company has a market cap of $2.88 billion, a price-to-earnings ratio of -2,935.06 and a beta of 1.21.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on ATS shares. Zacks Research upgraded ATS from a “strong sell” rating to a “hold” rating in a research note on Tuesday, October 14th. JPMorgan Chase & Co. lifted their price objective on shares of ATS from $33.00 to $35.00 and gave the company a “neutral” rating in a research note on Friday, January 16th. Scotiabank reissued an “outperform” rating on shares of ATS in a research report on Thursday, January 29th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of ATS in a report on Wednesday, January 21st. Finally, Wall Street Zen upgraded shares of ATS from a “hold” rating to a “buy” rating in a report on Saturday, January 17th. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, ATS has an average rating of “Hold” and an average target price of $35.00.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of ATS. Quarry LP acquired a new position in shares of ATS during the third quarter valued at $32,000. Raymond James Financial Inc. acquired a new stake in shares of ATS in the 2nd quarter worth approximately $43,000. SkyView Investment Advisors LLC bought a new position in shares of ATS in the second quarter valued at approximately $237,000. Boothbay Fund Management LLC increased its stake in shares of ATS by 52.4% during the third quarter. Boothbay Fund Management LLC now owns 10,170 shares of the company’s stock valued at $266,000 after acquiring an additional 3,496 shares during the period. Finally, PenderFund Capital Management Ltd. acquired a new stake in ATS in the third quarter worth approximately $523,000. Institutional investors own 75.84% of the company’s stock.

Key Headlines Impacting ATS

Here are the key news stories impacting ATS this week:

• Positive Sentiment: EPS topped expectations — management reported quarterly earnings above consensus (various reports show EPS ~ $0.34–$0.48 vs. estimates near $0.30), and net income rose year?over?year, supporting underlying profitability improvement. MarketBeat Earnings Report
• Positive Sentiment: Revenue showed solid year?over?year growth (management cited ~16.7% growth), indicating demand momentum in parts of the business despite mixed order commentary. BusinessWire Press Release
• Neutral Sentiment: Management hosted the Q3 call and published a slide deck and transcript — useful for investors wanting segment/order detail and cadence; no one?off material surprises were highlighted on the call. Earnings Call Transcript
• Negative Sentiment: Reported revenue figures vary by report/currency and some U.S. analyst consensus comparisons show a top?line shortfall versus expectations — this ambiguity on revenue in USD terms has pressured sentiment. MarketBeat Revenue Note
• Negative Sentiment: Q4 revenue guidance was provided as a range (~$509.2M–$537.9M) that sits near or slightly below some consensus figures, which can be read as cautious and may cap upside near term. (Guidance details released Feb. 4.)
• Negative Sentiment: Management updates flagged mixed orders and leadership changes, which add execution and near?term visibility risk for investors assessing the order book and outlook. TipRanks Article

ATS Company Profile

ATS Corporation (NYSE: ATS) is a Canada-based global provider of automation and energy solutions. Headquartered in Cambridge, Ontario, the company specializes in the design, engineering and manufacturing of custom automation and test systems, as well as fluid handling and control products. Since its founding in 1978, ATS has focused on delivering integrated hardware and software solutions that help original equipment manufacturers (OEMs) improve efficiency, quality and throughput across a range of industries.

Through its Automation segment, ATS develops bespoke assembly and testing platforms for sectors such as life sciences, consumer electronics, automotive and industrial equipment.