Why Machinery Industry Company Greenland Technologies' Shares Are Diving Today
Portfolio Pulse from Lekha Gupta
Greenland Technologies Holding Corp (GTEC) shares dropped over 12% after reporting Q3 FY23 results with revenue of $21.84 million, missing the consensus estimate of $24.27 million. The company sold more transmission products compared to the previous year and saw a 30.3% increase in gross profit, with a higher gross margin due to a shift towards higher value products. However, GTEC reported an EPS loss of $(0.07), which was below the expected $0.06 EPS. Despite challenges, the company has $21.54 million in cash and equivalents as of September 30, 2023.
November 20, 2023 | 4:00 pm
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Greenland Technologies' stock fell due to Q3 revenue miss and unexpected EPS loss, despite increased gross profit and margin improvement.
The stock price decline is directly related to the company's financial performance, which did not meet market expectations. Revenue misses and EPS losses are typically seen as negative indicators by investors, leading to a decrease in stock price. The improvement in gross profit and margin suggests some operational efficiency, but the immediate market reaction is likely to focus on the missed estimates and EPS loss.
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