Overview

* ATS Corp ( ATS ) fiscal Q1 revenue rises 6.1% yr/yr, beating analyst expectations

* Net income and adjusted EPS decline due to higher SG&A and finance costs

* CEO Andrew Hider steps down, CFO Ryan McLeod named interim CEO

Outlook

* ATS expects Q2 revenues between C$700 mln and C$740 mln

* Company sees strong funnel activity in life sciences and energy

* ATS notes inflationary pressures may disrupt margin expansion

* Company anticipates opportunities in nuclear refurbishment projects

Result Drivers

* ACQUISITIONS - Revenue growth driven by contributions from recent acquisitions and positive foreign exchange impact

* HIGHER COSTS - Net income decline attributed to increased SG&A, stock-based compensation, and finance costs

* ORDER DECLINE - 15.2% decrease in order bookings mainly due to reduced EV production investments

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Beat C$736.70 C$712.90

Revenue mln mln (7

Analysts

)

Q1 Net C$24.30

Income mln

Q1 Basic C$0.25

EPS

Q1 Order C$2.07

Backlog bln

Q1 C$693

Orders mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

* Wall Street's median 12-month price target for ATS Corp ( ATS ) is C$49.00, about 12.9% above its August 6 closing price of C$42.68

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)