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CLEVELAND - Preformed Line Products (NASDAQ:PLPC) saw its stock soar 16.9% after reporting fourth-quarter earnings that significantly exceeded expectations, driven by robust international sales and improved profitability.
The company, which manufactures cable anchoring and control hardware for the energy and communications industries, reported Q4 earnings per share of $2.13, a 65% increase from $1.29 in the same quarter last year. Revenue for the quarter came in at $167.1 million, up 15% YoY from $145.6 million.
The strong performance was primarily attributed to increased sales in international markets, particularly in the energy sector. Despite a $3.0 million reduction in net sales due to foreign currency translation, the company’s international subsidiaries accounted for the majority of the sales increase.
Rob Ruhlman, Executive Chairman, commented on the results, stating, "The increase in fourth quarter sales of 15% versus the fourth quarter of 2023, as well as the sequential increase of 14% from last quarter, indicate we are approaching the end of inventory destocking within our primary end markets."
Gross profit margin improved to 33.3% in Q4, up 30 basis points from the same period last year. The company also reported lower period expenses and reduced interest costs, contributing to the improved bottom line.
For the full year 2024, Preformed Line Products saw net sales decrease 11% to $593.7 million, primarily due to slowdowns in U.S. energy and communications markets. However, the company’s strong cash generation allowed for a $33.7 million reduction in debt over the year.
Looking ahead, Preformed Line Products remains focused on new product development, facility modernization, and potential acquisitions to drive growth, leveraging its strong balance sheet and liquidity position.
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