ATS (NYSE:ATS) Issues Quarterly Earnings Results, Misses Expectations By $0.03 EPS

ATS (NYSE:ATS) released its quarterly earnings results on Thursday. The company reported $0.25 earnings per share for the quarter, missing the consensus estimate of $0.28 by ($0.03), Zacks reports. The firm had revenue of $488.38 million for the quarter, compared to analyst estimates of $509.71 million. ATS had a return on equity of 9.00% and a net margin of 1.60%.The business’s revenue for the quarter was down 5.8% on a year-over-year basis. During the same period in the previous year, the business posted $0.41 earnings per share.

Here are the key takeaways from ATS’s conference call:

• Q1 performance declined: Adjusted revenue fell 5.2% year over year to CAD 698 million, while adjusted earnings from operations declined 13.4% to CAD 68.1 million, reflecting a lower opening backlog, project timing, and reduced transportation activity.
• Near-term execution remains dependent on a second-half recovery. ATS expects Q2 revenue of CAD 660 million–CAD 700 million and said achieving modest fiscal 2027 organic growth will require stronger order rates and the conversion of larger awards in the back half of the year.
• Cost transformation targets significant margin expansion. The 18-month program is expected to generate approximately CAD 20 million in annualized savings from its initial European phase, representing about 30% of the anticipated overall opportunity; management estimates the program could contribute roughly 250 basis points of margin improvement over time.
• Radiopharmaceuticals, energy, and services remain key growth drivers. Life sciences book-to-bill excluding GLP-1 activity was approximately 1.1 times, radiopharma backlog has become highly material, energy demand is supported by nuclear and data-center power investment, and service revenue grew 11% year over year.
• Management maintained financial flexibility while pursuing its strategy. Backlog was approximately CAD 1.9 billion, leverage ended the quarter at 2.9 times net debt to adjusted EBITDA within the targeted range, and the acquisition pipeline remains active, although operating cash flow was negative CAD 10 million due to billing and collection timing.

ATS Price Performance

Shares of NYSE ATS traded up $0.64 during trading hours on Friday, hitting $21.17. 428,320 shares of the stock were exchanged, compared to its average volume of 195,396. ATS has a 1-year low of $19.14 and a 1-year high of $35.82. The company has a market cap of $2.08 billion, a PE ratio of 62.27 and a beta of 1.22. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.36 and a current ratio of 1.64. The company’s fifty day simple moving average is $27.35 and its two-hundred day simple moving average is $29.80.

Institutional Trading of ATS

Several institutional investors and hedge funds have recently modified their holdings of ATS. Bank of Montreal Can increased its stake in ATS by 187.1% in the 4th quarter. Bank of Montreal Can now owns 3,022,693 shares of the company’s stock worth $83,269,000 after buying an additional 1,970,040 shares during the period. Royal Bank of Canada lifted its position in ATS by 8.9% during the fourth quarter. Royal Bank of Canada now owns 7,644,547 shares of the company’s stock valued at $210,529,000 after acquiring an additional 623,369 shares during the last quarter. EdgePoint Investment Group Inc. grew its stake in shares of ATS by 8.0% during the fourth quarter. EdgePoint Investment Group Inc. now owns 6,888,785 shares of the company’s stock worth $189,771,000 after acquiring an additional 507,491 shares during the last quarter. Bank of America Corp DE raised its position in ATS by 45.2% during the 3rd quarter. Bank of America Corp DE now owns 1,251,695 shares of the company’s stock worth $32,794,000 after buying an additional 389,862 shares during the last quarter. Finally, Public Sector Pension Investment Board raised its position in ATS by 364.9% during the fourth quarter. Public Sector Pension Investment Board now owns 287,829 shares of the company’s stock valued at $7,929,000 after acquiring an additional 225,923 shares in the last quarter. 75.84% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of research firms have recently weighed in on ATS. Wall Street Zen downgraded ATS from a “buy” rating to a “hold” rating in a report on Sunday, July 12th. Scotiabank reissued an “outperform” rating on shares of ATS in a report on Tuesday, April 28th. Desjardins assumed coverage on shares of ATS in a research report on Tuesday, June 16th. They set a “buy” rating on the stock. Royal Bank Of Canada lowered their target price on shares of ATS from $51.00 to $50.00 and set an “outperform” rating on the stock in a report on Friday, May 29th. Finally, Weiss Ratings downgraded shares of ATS from a “sell (d+)” rating to a “sell (d)” rating in a research report on Thursday. Four research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, ATS presently has a consensus rating of “Hold” and a consensus price target of $42.50.

Key Stories Impacting ATS

Here are the key news stories impacting ATS this week:

• Positive Sentiment: ATS announced a Fixed Cost Transformation Program following a portfolio review. The initiative is intended to improve the company’s cost structure and could support margins and cash flow over time, although implementation costs may arise first. ATS Reports First Quarter Fiscal 2027 Results and Announces a Fixed Cost Transformation Program
• Neutral Sentiment: Shareholders approved the board, auditor and executive compensation policy at ATS’s August 6 annual meeting. The results provide governance continuity but do not materially change the company’s operating outlook. ATS Corporation Shareholders Back Board, Auditor and Pay Policy at 2026 AGM
• Negative Sentiment: Fiscal 2027 first-quarter adjusted earnings were $0.25 per share, below the $0.28 consensus estimate and down from $0.41 a year earlier. Revenue fell 5.8% year over year to $488.4 million, missing analysts’ approximately $509.7 million forecast, while margins and profitability also declined. ATS Q1 Earnings and Revenues Lag Estimates
• Negative Sentiment: ATS’s second-quarter fiscal 2027 revenue guidance of $476.8 million to $505.7 million was below the roughly $509.8 million analyst consensus. The outlook reinforces concerns about near-term demand and makes the planned cost reductions more important to the investment case. ATS Corporation 2027 Q1 Results Presentation

ATS Company Profile

ATS Corporation (NYSE: ATS) is a Canada-based global provider of automation and energy solutions. Headquartered in Cambridge, Ontario, the company specializes in the design, engineering and manufacturing of custom automation and test systems, as well as fluid handling and control products. Since its founding in 1978, ATS has focused on delivering integrated hardware and software solutions that help original equipment manufacturers (OEMs) improve efficiency, quality and throughput across a range of industries.

Through its Automation segment, ATS develops bespoke assembly and testing platforms for sectors such as life sciences, consumer electronics, automotive and industrial equipment.