Preformed Line Products (NASDAQ:PLPC) Shares Gap Up After Strong Earnings

Key Points

• Preformed Line Products shares surged from a $283.51 close to a $347.08 open after the company reported quarterly EPS of $4.49, well above the $2.41 consensus estimate, and revenue of $212.68 million versus expectations of $193 million.
• The company paid a quarterly dividend of $0.21 per share, equivalent to $0.84 annually and a 0.2% yield, with a 12.09% payout ratio.
• Analysts maintain a consensus “Hold” rating with an average price target of $275, below the stock’s recent trading level near $350; institutional investors own 41.19% of the company.

Shares of Preformed Line Products Company (NASDAQ:PLPC - Get Free Report) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $283.51, but opened at $347.08. Preformed Line Products shares last traded at $350.1950, with a volume of 15,319 shares trading hands.

The technology company reported $4.49 EPS for the quarter, topping the consensus estimate of $2.41 by $2.08. The firm had revenue of $212.68 million for the quarter, compared to analysts' expectations of $193.00 million. Preformed Line Products had a return on equity of 8.96% and a net margin of 4.92%.

Preformed Line Products Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, July 20th. Stockholders of record on Wednesday, July 1st were issued a $0.21 dividend. The ex-dividend date was Wednesday, July 1st. This represents a $0.84 annualized dividend and a dividend yield of 0.2%. Preformed Line Products's dividend payout ratio is 12.09%.

Wall Street Analyst Weigh In

PLPC has been the topic of several research reports. Freedom Capital cut shares of Preformed Line Products from a "strong-buy" rating to a "hold" rating in a research report on Friday, May 1st. Weiss Ratings reiterated a "hold (c+)" rating on shares of Preformed Line Products in a report on Friday, July 24th. Finally, Wall Street Zen upgraded shares of Preformed Line Products from a "hold" rating to a "buy" rating in a report on Saturday, June 6th. Two investment analysts have rated the stock with a Hold rating, According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $275.00.

Institutional Investors Weigh In On Preformed Line Products

Several hedge funds have recently made changes to their positions in PLPC. HighTower Advisors LLC raised its stake in Preformed Line Products by 11.6% during the 4th quarter. HighTower Advisors LLC now owns 966,185 shares of the technology company's stock valued at $199,720,000 after purchasing an additional 100,113 shares during the period. Wasatch Advisors LP raised its position in Preformed Line Products by 234.3% during the second quarter. Wasatch Advisors LP now owns 377,367 shares of the technology company's stock valued at $154,932,000 after buying an additional 264,478 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Preformed Line Products by 1.3% during the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 217,511 shares of the technology company's stock valued at $42,665,000 after buying an additional 2,768 shares during the period. Vanguard Group Inc. lifted its stake in Preformed Line Products by 4.8% in the 3rd quarter. Vanguard Group Inc. now owns 162,173 shares of the technology company's stock worth $31,810,000 after acquiring an additional 7,426 shares in the last quarter. Finally, Invesco Ltd. boosted its position in Preformed Line Products by 25.7% during the 4th quarter. Invesco Ltd. now owns 79,299 shares of the technology company's stock worth $16,392,000 after acquiring an additional 16,223 shares during the period. Hedge funds and other institutional investors own 41.19% of the company's stock.

Preformed Line Products Price Performance

The company has a current ratio of 3.01, a quick ratio of 1.78 and a debt-to-equity ratio of 0.07. The stock has a 50-day simple moving average of $360.16 and a 200 day simple moving average of $310.98. The stock has a market capitalization of $1.74 billion, a price-to-earnings ratio of 50.99 and a beta of 0.88.

Preformed Line Products Company Profile

Preformed Line Products Company NASDAQ: PLPC is a global manufacturer of engineered solutions for electric, telecommunications and industrial infrastructure networks. The company designs, engineers and produces a broad portfolio of products, including preformed wire and cable fittings, anchors, suspension and tension clamps, splice closures and optical fiber hardware. These durable components support the installation, repair and maintenance of overhead and underground systems, helping utilities and contractors manage reliability and safety in demanding environments.

Founded in 1947 and headquartered in Mayfield Village, Ohio, Preformed Line Products operates manufacturing facilities and distribution centers across North America, Europe and the Asia Pacific region.

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