ATS Automation Beats on Revenue, Miss on EPS in Q4; Shares Gain 8%

Shares of ATS Automation Tooling Systems (ATA) gained about 8% in early trading Thursday after the company reported its Q4 2021 and fiscal 2021 financial results. The Canada-based company provides automation solutions to businesses worldwide.

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Q4 revenues increased 4.7% year-on-year to C$399.9 million, beating estimates by C$84.94 million. For FY 2021, revenues of C$1,430 million were flat year-over-year.

Earnings per share were C$0.26 in Q4 2021, up from C$0.14 in Q4 2020. Adjusted earnings per share amounted to C$0.34, up from C$0.26 in the prior-year quarter. Analysts anticipated Q4 EPS of C$0.30 per share. For the year, earnings were C$0.70 per basic share, up from C$0.57 in the prior year. Adjusted basic earnings per share amounted to C$1.07, one cent higher than in FY 2020.

Order Bookings reached C$463 million, 30.1% higher than a year ago, reflecting organic growth. For the year, Order Bookings totaled C$1,626 million, up from C$1,468 million a year earlier. Order Backlog increased 23.1% to C$1,160 million as of March 31, 2021.

ATS Automation CEO Andrew Hider said, “Fourth quarter performance featured record Order Bookings and Order Backlog as well as strong operating margins despite a challenging environment. ATS starts the new fiscal year with a solid base of business and balance sheet strength to execute our Build, Grow and Expand value creation strategy.”

Hider went on to say, “The pandemic environment highlighted the resiliency of our business and I am very proud of how our people mobilized to creatively serve our customers. At the same time, we set the stage for additional growth through our M&A strategy with the acquisition of CFT in late March and a definitive agreement to acquire BioDot in the new fiscal year.”

BioDot’s acquisition will bolster ATS Automation’s Life Sciences capabilities, among other things. (See ATS Automation Tooling Systems stock analysis on TipRanks)

Last month, Scotiabank analyst Mark Neville reiterated a Buy rating on ATA while raising its price target to C$35.50 (from C$35.00), for 18.4% upside potential. Neville stated that the pandemic reinforces secular trends in life sciences and other industries that will benefit ATS Automation.

Overall, consensus on the Street is that ATA is a Strong Buy based on 3 Buys. The average analyst price target of C$34.75 implies 16% upside potential from current levels. Shares have gained more than 35% year-to-date.