In Friday’s after-hours trading, Preformed Line Products Company (Nasdaq: PLPC) shares increased 4.99% to $92.30. PLPC stock increased despite the lack of recent news, thus previous events may be helpful in understanding the firm.
What recently happened at PLPC?
Beginning the month, Preformed Line Products (PLPC) released financial data for the third quarter that concluded on September 30, 2022.
Q3 2022 Highlights:
- Performed Line Products reported net sales of $165.4 million for the third quarter of 2022 as opposed to $135.4 million in the third quarter of 2021, a 22% increase in net sales.
- As opposed to $10.7 million, or $2.15 per diluted share, in the third quarter of 2021, PLPC reported a net income for the third quarter of 2022 of $11.9 million, or $2.36 per diluted share.
- The third quarter of 2022 saw a 22% growth in net sales, and the gross margin increased from 31.9% to 35.2% thanks to operational improvements and previously announced price hikes that lessened the impact of inflation on freight and commodity prices.
- YTD With steady gross margins as of September 30, 2022, net income benefited from a 21% YTD rise in net sales.
- The Asia-Pacific goodwill impairment charge lowered YTD net income by $6.5 million, which was somewhat offset by the $4.4 million non-taxable gain from life insurance benefits.
- Rates of currency conversion had a positive impact on the $0.4 million net income.
PLPC initiated an acquisition action?
The market leader in Mexico and designer and producer of substation connector systems and auxiliary hardware for high-voltage AC systems, Delta Conectores, S.A. de C.V., was bought by PLPC last month. The purchase of Delta will help PLPC further it’s worldwide substation strategy while significantly enhancing its operational and technical skills in the area. The Preformed Line Products (PLPC) family has expanded its current substation product range with the inclusion of Delta. They strengthen PLPC’s production capabilities in North America and add a high degree of design experience.