Forgent Power Solutions (NYSE:FPS) Shares Gap Up Following Earnings Beat

Key Points

• Forgent Power Solutions beat quarterly earnings expectations, reporting EPS of $0.25 versus the $0.24 consensus estimate and revenue of $461.67 million, up 94.3% year over year. The company issued FY 2027 EPS guidance of $1.26–$1.40.
• Shares jumped 12%, opening at $30.93 after previously closing at $28.64, and later traded near $32.75. Despite the rally, the stock’s valuation remained elevated, with a price-to-earnings ratio of 214.78.
• Analyst sentiment is broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $56.75. Several institutional investors also initiated or expanded positions during the second quarter.

Forgent Power Solutions, Inc. (NYSE:FPS - Get Free Report) gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $28.64, but opened at $30.93. Forgent Power Solutions shares last traded at $32.7450, with a volume of 6,869,647 shares.

The company reported $0.25 EPS for the quarter, topping analysts' consensus estimates of $0.24 by $0.01. Forgent Power Solutions had a return on equity of 12.14% and a net margin of 2.17%.The business had revenue of $461.67 million during the quarter. The business's revenue for the quarter was up 94.3% compared to the same quarter last year. Forgent Power Solutions has set its FY 2027 guidance at 1.260-1.400 EPS.

Wall Street Analyst Weigh In

A number of research firms have weighed in on FPS. Jefferies Financial Group upped their price target on shares of Forgent Power Solutions from $44.00 to $56.00 and gave the stock a "buy" rating in a research report on Friday, May 29th. TD Cowen lifted their target price on shares of Forgent Power Solutions from $63.00 to $73.00 and gave the company a "buy" rating in a research note on Monday, June 22nd. Wolfe Research reiterated an "outperform" rating and issued a $60.00 price target on shares of Forgent Power Solutions in a research note on Thursday, July 9th. Weiss Ratings cut Forgent Power Solutions from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, July 28th. Finally, Robert W. Baird assumed coverage on Forgent Power Solutions in a research note on Wednesday, July 15th. They issued an "outperform" rating and a $55.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $56.75.

Institutional Investors Weigh In On Forgent Power Solutions

Several large investors have recently made changes to their positions in the company. California State Teachers Retirement System bought a new position in shares of Forgent Power Solutions during the 2nd quarter valued at approximately $510,943,000. Value Aligned Research Advisors LLC purchased a new stake in Forgent Power Solutions during the second quarter valued at $176,441,000. Spyglass Capital Management LLC purchased a new stake in Forgent Power Solutions during the second quarter valued at $39,401,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new position in Forgent Power Solutions during the second quarter valued at $23,123,000. Finally, Bank of New York Mellon Corp grew its stake in shares of Forgent Power Solutions by 813.0% in the 2nd quarter. Bank of New York Mellon Corp now owns 326,317 shares of the company's stock worth $18,228,000 after buying an additional 290,577 shares in the last quarter.

Forgent Power Solutions Stock Up 12.0%

The business's 50 day simple moving average is $35.89 and its 200 day simple moving average is $40.21. The company has a current ratio of 1.64, a quick ratio of 1.16 and a debt-to-equity ratio of 0.99. The firm has a market capitalization of $9.77 billion and a PE ratio of 214.78.

Forgent Power Solutions Company Profile

Forgent Power Solutions, Inc develops and manufactures products used in electric power transmission and distribution infrastructure. Its offerings support the generation, transmission, distribution and management of electrical power for utility and industrial applications.

The company's product portfolio includes equipment and components used in overhead and underground power networks, including electrical connectors, fittings, line hardware and other engineered solutions designed to support the reliability and efficiency of power-delivery systems.

Forgent Power Solutions serves electric utilities, distributors and industrial customers, primarily through markets connected to North American power infrastructure.

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