EPS of $1.98 beat estimates of $1.51 and revenues of $197.21M beat estimates of $190.97M. Sales grew by 14.4% against the prior year, and its Adjusted EBITDA margin was 16.5% for the quarter. The official opening of a new factory in Mexico helped its sales, and it achieved record all-time shipments once again.
SBC had a net positive impact on earnings this quarter, as the fair value of options decreased along with the share price quarter-to-quarter. HPS.A reported a $6M positive impact from SBC this quarter, compared to a ($16.7M) SBC expense in the most recent quarter (Q1 2024).
Shares are up about 7% so far on the earnings results, and we feel investors should be pleased with these results, and a slight relief on the net benefit impact from SBC this quarter.