PLPC Reports 36% EPS Growth Despite Stock Dip
Preformed Line Products Company (PLPC) has reported a strong third quarter, with adjusted earnings per share (EPS) increasing by 36% to $2.09 after accounting for a one-time pension plan termination cost. Despite this positive news, PLPC stock experienced a 3.21% drop to close October at $212.11.
PLPC's robust performance was driven by a 21% growth in revenue, reaching $178.1 million in the third quarter. The company's operating profit stood at $13.1 million during this period. PLPC's cash position at the end of the quarter was a healthy $72.9 million.
The company's strategic move to acquire JAP Telecom in Brazil has bolstered its communications business across the Americas. To secure its employees' retirement benefits, PLPC terminated its pension plan with a one-time payment of $13.1 million and purchased an $18 million annuity. PLPC has also ensured liquidity with $52.1 million available under a $60 million revolving credit facility.
PLPC's third quarter results demonstrate the company's resilience and growth potential. Despite the stock's recent dip, analysts at StockInvest.us maintain a 'Buy Candidate Unchanged' rating for PLPC with a score of 2.002, reflecting their confidence in the company's prospects.
