ATS (NYSE:ATS) Sets New 1-Year Low After Earnings Miss

ATS Corporation (NYSE:ATS) hit a new 52-week low during trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $19.14 and last traded at $21.4910, with a volume of 74905 shares changing hands. The stock had previously closed at $27.95.

The company reported $0.25 EPS for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.03). The company had revenue of $488.38 million for the quarter, compared to analyst estimates of $509.71 million. ATS had a net margin of 1.60% and a return on equity of 9.00%. ATS’s quarterly revenue was down 5.8% compared to the same quarter last year. During the same quarter last year, the company posted $0.41 EPS.

Key Headlines Impacting ATS

Here are the key news stories impacting ATS this week:

• Positive Sentiment: ATS announced a Fixed Cost Transformation Program following a portfolio review. The initiative is intended to improve the company’s cost structure and could support margins and cash flow over time, although implementation costs may arise first. ATS Reports First Quarter Fiscal 2027 Results and Announces a Fixed Cost Transformation Program
• Neutral Sentiment: Shareholders approved the board, auditor and executive compensation policy at ATS’s August 6 annual meeting. The results provide governance continuity but do not materially change the company’s operating outlook. ATS Corporation Shareholders Back Board, Auditor and Pay Policy at 2026 AGM
• Negative Sentiment: Fiscal 2027 first-quarter adjusted earnings were $0.25 per share, below the $0.28 consensus estimate and down from $0.41 a year earlier. Revenue fell 5.8% year over year to $488.4 million, missing analysts’ approximately $509.7 million forecast, while margins and profitability also declined. ATS Q1 Earnings and Revenues Lag Estimates
• Negative Sentiment: ATS’s second-quarter fiscal 2027 revenue guidance of $476.8 million to $505.7 million was below the roughly $509.8 million analyst consensus. The outlook reinforces concerns about near-term demand and makes the planned cost reductions more important to the investment case. ATS Corporation 2027 Q1 Results Presentation

Analysts Set New Price Targets

ATS has been the topic of a number of recent research reports. Desjardins started coverage on shares of ATS in a research report on Tuesday, June 16th. They set a “buy” rating on the stock. Wall Street Zen lowered ATS from a “buy” rating to a “hold” rating in a research note on Sunday, July 12th. Zacks Research downgraded shares of ATS from a “hold” rating to a “strong sell” rating in a research report on Tuesday, June 9th. Royal Bank Of Canada dropped their price target on ATS from $51.00 to $50.00 and set an “outperform” rating on the stock in a research report on Friday, May 29th. Finally, Weiss Ratings cut shares of ATS from a “sell (d+)” rating to a “sell (d)” rating in a report on Thursday. Four research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, ATS currently has an average rating of “Hold” and a consensus price target of $42.50.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Royal Bank of Canada increased its holdings in shares of ATS by 1.5% during the 1st quarter. Royal Bank of Canada now owns 7,761,838 shares of the company’s stock valued at $218,884,000 after acquiring an additional 117,291 shares during the last quarter. EdgePoint Investment Group Inc. lifted its position in ATS by 4.1% during the 1st quarter. EdgePoint Investment Group Inc. now owns 7,168,112 shares of the company’s stock worth $202,081,000 after acquiring an additional 279,327 shares during the last quarter. Vanguard Group Inc. boosted its holdings in ATS by 1.7% during the fourth quarter. Vanguard Group Inc. now owns 3,397,166 shares of the company’s stock valued at $93,582,000 after acquiring an additional 55,731 shares during the period. Bank of Montreal Can boosted its stake in ATS by 187.1% during the 4th quarter. Bank of Montreal Can now owns 3,022,693 shares of the company’s stock valued at $83,269,000 after purchasing an additional 1,970,040 shares during the period. Finally, Janus Henderson Group PLC boosted its position in shares of ATS by 166.5% in the first quarter. Janus Henderson Group PLC now owns 2,297,214 shares of the company’s stock valued at $64,544,000 after acquiring an additional 1,435,375 shares during the period. Institutional investors and hedge funds own 75.84% of the company’s stock.

ATS Stock Up 3.1%

The company has a market capitalization of $2.08 billion, a price-to-earnings ratio of 62.27 and a beta of 1.22. The firm’s 50-day simple moving average is $27.35 and its 200-day simple moving average is $29.80. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.36 and a current ratio of 1.64.

About ATS

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.