Sheldon
Adjusted EPS of 50c missed estimates of 52c and were down from 69c in the year prior. Revenue also missed estimates of $695.4M coming in at $694.3M, declining 7.9% year-over-year. Organic revenue declined 12.7% year-over-year. The declines were primarily driven by weakness in the transportation segment and shifting the timing of execution in food&beverage and consumer products. Life sciences continues to be strong displaying quarterly revenue growth of 15.2%. Bookings were however very high displaying 18% year-over-year growth, and 13% organic bookings growth. Backlog remains large at $1.88B, which did decline by 7% from the prior year, but this is due to transportation becoming a smaller market. ATS also announced an acquisition just prior of the laboratory solutions firm Heidolph Group which had nearly $55M in revenue for its prior year ended. While the quarter was not great for ATS, bookings growth was very strong and it appears that demand may be pushed into the second half of this year. This is likely why why the stock is up today.