Shares of ATS Corp. (NYSE: ATS) plunged 5.23% in pre-market trading on Thursday following the release of its fiscal first-quarter earnings report. Despite beating revenue expectations, the company's adjusted earnings per share fell short of analyst estimates, disappointing investors.
ATS reported fiscal Q1 adjusted earnings of CA$0.41 (US$0.30) per basic share, down from CA$0.50 in the same quarter last year and below the FactSet analyst consensus estimate of CA$0.44. However, the company's revenue for the quarter ended June 29 rose to CA$736.7 million, up from CA$694.3 million a year earlier and surpassing the analyst expectations of CA$712.2 million.
Looking ahead, ATS provided fiscal Q2 revenue guidance of CA$700 million to CA$740 million, compared to the FactSet analyst consensus of CA$721.5 million. The stock's sharp decline suggests that investors may be concerned about the company's earnings decline and uncertain about its future growth prospects, despite the revenue beat and guidance in line with expectations.