Graham (NYSE:GHM) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• Graham shares jumped after earnings: They opened at $77, up from the prior close of $69.52, and later traded around $75.70.
• Quarterly EPS was $0.52, beating the $0.34 consensus and rising from $0.31 a year earlier.
• Revenue grew 6% year over year to $69.8 million but fell short of the $71.1 million estimate. Analysts’ average rating is “Moderate Buy,” with a $123.33 consensus price target.

Graham Corporation (NYSE:GHM - Get Free Report) shares gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $69.52, but opened at $77.00. Graham shares last traded at $75.6950, with a volume of 13,020 shares traded.

The industrial products company reported $0.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.34 by $0.18. The company had revenue of $69.76 million during the quarter, compared to the consensus estimate of $71.07 million. Graham had a return on equity of 11.09% and a net margin of 4.53%.

Key Graham News

Here are the key news stories impacting Graham this week:

• Positive Sentiment: Graham earned $0.52 per share, above analyst estimates and up from $0.31 a year earlier. The profit beat is the clearest positive in the quarterly report. Zacks: Graham Q2 Earnings Beat Estimates
• Positive Sentiment: Second-quarter net sales increased 6% to $69.8 million year over year, indicating continued revenue growth. Graham Corporation Reports Second Quarter Fiscal 2027 Results
• Negative Sentiment: Revenue nevertheless missed expectations: $69.8 million versus analysts’ estimate of about $71.1 million. The sales shortfall may temper the positive reaction to the earnings beat. Graham Corporation misses sales expectations

Analyst Ratings Changes

GHM has been the subject of a number of research reports. JPMorgan Chase & Co. began coverage on Graham in a research note on Friday, October 2nd. They set an "overweight" rating and a $120.00 target price for the company. Wall Street Zen raised shares of Graham from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Oppenheimer reduced their price target on shares of Graham from $130.00 to $115.00 and set an "outperform" rating for the company in a report on Thursday, October 8th. Finally, Weiss Ratings cut shares of Graham from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, October 2nd. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, Graham currently has an average rating of "Moderate Buy" and a consensus price target of $123.33.

Hedge Funds Weigh In On Graham

Several hedge funds have recently made changes to their positions in GHM. Thurston Springer Miller Herd & Titak Inc. bought a new position in Graham in the second quarter valued at $52,000. Fifth Third Bancorp acquired a new stake in Graham in the 1st quarter valued at $69,000. Silvant Capital Management LLC bought a new stake in Graham during the 2nd quarter worth about $101,000. Westport Asset Management Inc. bought a new stake in Graham during the 2nd quarter worth about $171,000. Finally, AssuredPartners Investment Advisors LLC bought a new stake in Graham during the 2nd quarter worth about $214,000. 69.46% of the stock is owned by institutional investors.

Graham Stock Performance

The firm's 50-day simple moving average is $80.47 and its 200 day simple moving average is $91.07. The stock has a market capitalization of $892.90 million, a P/E ratio of 73.15 and a beta of 1.16.

Graham Company Profile

Graham Corporation NYSE: GHM is a U.S.-based designer and manufacturer of engineered equipment and systems for the defense, space, and commercial markets. The company develops thermal-management, fluid-handling, vacuum, and power-generation technologies used in demanding industrial and government applications.

Graham supplies equipment for naval vessels, including surface ships and submarines, as well as systems supporting aerospace and space programs. Its products and capabilities include condensers, heat exchangers, vacuum equipment, steam and gas ejectors, cryogenic systems, and integrated propulsion and power solutions.

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