ATS Automation Fiscal Q3 Revenue Rises 48%

ATS Automation Tooling Systems (TSE: ATA) reported record order bookings, order backlog, and revenues in its Fiscal Q3 2022 results. The Canada-based company provides automation solutions to businesses worldwide. 

Revenues & Earnings

Q3 revenues increased 47.9% year-over-year to C$546.8 million, including $114.6 million in revenues earned by acquired companies.  

Meanwhile, earnings per share were C$0.25 in Q3 2022, up from C$0.20 in Q3 2021. Adjusted earnings per share amounted to C$0.52, up from C$0.30 in the prior-year quarter.  

Order Bookings reached C$671 million, 54.3% higher than a year ago. On the other hand, Order Backlog increased 49.7% to C$1,475 million from C$985 million.

CEO Commentary

ATS’ CEO Andrew Hider said, “The third quarter of fiscal 2022 featured record Order Bookings, Order Backlog, and revenues driven by both organic growth and solid contributions from our acquisitions.

“The deployment of the ABM and effective countermeasures put in place to protect our people and our operations resulted in good results for customers and shareholders despite the resurgence of the COVID-19 pandemic and ongoing supply chain disruptions. Our record Order Backlog provides good revenue visibility, and our strong balance sheet enables us to continue supporting our growth strategies.”

Mr. Hider added that ATS made three recent acquisitions to broaden the company’s portfolio in key areas of life sciences, including aseptic fill-finish and pharmaceutical development.

The integrations of these businesses, as well as CFT, BioDot, and NCC, are progressing according to plan as the company focuses on capturing all of the multi-year organic growth and cost synergy opportunities originally identified.

Wall Street’s Take

Last week, Stifel Nicolaus analyst Justin Keywood kept a Buy rating on ATA and a C$61 price target. This implies 15% upside potential.  

Overall, the consensus on the Street is that ATA is a Strong Buy based on four Buys.

The average ATS Automation Tooling Systems price target of C$62.75 implies 18.4% upside potential from current levels. 

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