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

Perma-Pipe International (NASDAQ:PPIH) announced its quarterly earnings data on Wednesday. The industrial products company reported $0.31 earnings per share for the quarter, missing analysts’ consensus estimates of $0.55 by ($0.24), FiscalAI reports. The firm had revenue of $59.57 million for the quarter, compared to analysts’ expectations of $51.20 million. Perma-Pipe International had a net margin of 6.47% and a return on equity of 15.92%.

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%

NASDAQ PPIH traded up $0.44 during mid-day trading on Wednesday, reaching $29.55. The stock had a trading volume of 249,431 shares, compared to its average volume of 101,934. The stock has a market cap of $240.24 million, a PE ratio of 17.49 and a beta of 0.59. The company has a fifty day moving average price of $26.04 and a 200 day moving average price of $29.05. Perma-Pipe International has a 1 year low of $21.96 and a 1 year high of $36.72. The company has a debt-to-equity ratio of 0.21, a current ratio of 2.31 and a quick ratio of 2.02.

Institutional Trading of Perma-Pipe International

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Invesco Ltd. bought a new position in shares of Perma-Pipe International during the 4th quarter valued at approximately $2,914,000. Russell Investments Group Ltd. purchased a new position in shares of Perma-Pipe International during the 3rd quarter valued at $805,000. Millennium Management LLC increased its stake in Perma-Pipe International by 265.1% in the 4th quarter. Millennium Management LLC now owns 42,780 shares of the industrial products company’s stock worth $1,299,000 after buying an additional 31,064 shares in the last quarter. JPMorgan Chase & Co. boosted its stake in shares of Perma-Pipe International by 1,595.6% in the third quarter. JPMorgan Chase & Co. now owns 30,419 shares of the industrial products company’s stock worth $713,000 after acquiring an additional 28,625 shares during the period. Finally, UBS Group AG grew its position in shares of Perma-Pipe International by 7,873.9% during the third quarter. UBS Group AG now owns 26,234 shares of the industrial products company’s stock worth $615,000 after purchasing an additional 25,905 shares in the last quarter. 28.43% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

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

About Perma-Pipe International

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.