Perma-Pipe International (NASDAQ:PPIH) Announces Quarterly Earnings Results

Perma-Pipe International (NASDAQ:PPIH) announced its quarterly earnings results on Wednesday. The industrial products company reported $0.31 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.55 by ($0.24), FiscalAI reports. Perma-Pipe International had a net margin of 6.89% and a return on equity of 21.81%. The company had revenue of $59.57 million for the quarter, compared to analysts’ expectations of $51.20 million.

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 Down 0.6%

PPIH stock opened at $29.37 on Friday. Perma-Pipe International has a fifty-two week low of $21.96 and a fifty-two week high of $36.72. The business’s 50-day moving average is $26.19 and its two-hundred day moving average is $28.99. The company has a debt-to-equity ratio of 0.21, a quick ratio of 2.02 and a current ratio of 2.31. The company has a market cap of $238.78 million, a price-to-earnings ratio of 15.46 and a beta of 0.59.

Institutional Investors Weigh In On Perma-Pipe International

Hedge funds and other institutional investors have recently made changes to their positions in the business. State of Wyoming lifted its position in shares of Perma-Pipe International by 59.7% during the 4th quarter. State of Wyoming now owns 2,102 shares of the industrial products company’s stock valued at $64,000 after buying an additional 786 shares in the last quarter. Bank of America Corp DE increased its holdings in Perma-Pipe International by 1,730.8% in the 2nd quarter. Bank of America Corp DE now owns 1,190 shares of the industrial products company’s stock worth $27,000 after acquiring an additional 1,125 shares in the last quarter. Empowered Funds LLC raised its stake in Perma-Pipe International by 8.8% during the 1st quarter. Empowered Funds LLC now owns 20,101 shares of the industrial products company’s stock worth $250,000 after acquiring an additional 1,626 shares during the period. Dimensional Fund Advisors LP lifted its holdings in Perma-Pipe International by 0.5% during the third quarter. Dimensional Fund Advisors LP now owns 478,988 shares of the industrial products company’s stock valued at $11,222,000 after purchasing an additional 2,463 shares in the last quarter. Finally, Bridgeway Capital Management LLC boosted its position in shares of Perma-Pipe International by 4.3% in the fourth quarter. Bridgeway Capital Management LLC now owns 64,769 shares of the industrial products company’s stock worth $1,966,000 after purchasing an additional 2,682 shares during the period. Hedge funds and other institutional investors own 28.43% of the company’s stock.

Analysts Set New Price Targets

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

Perma-Pipe International Company Profile

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.