Forgent Power Solutions, Inc. (NYSE:FPS) shares are trading higher Thursday after the company reported better-than-expected third-quarter revenue results and issued fourth-quarter revenue guidance above estimates. Also, the company raised its fiscal-year 2026 revenue guidance above estimates.
- Forgent shares are testing new highs. Why did FPS hit a new high?
Q3 Highlights
Forgent reported revenue of $378.70 million, beating the consensus estimate of $292.43 million and representing a 103% year-over-year increase.
The company also reported bookings of $867 million, up 308% year-over-year. Forgent said its book-to-bill ratio was 2.3x during the quarter.
Backlog totaled $1.98 billion, representing a 157% year-over-year increase and a 33% increase on a quarter-over-quarter basis.
"Demand for our products continues to outpace our expectations. Year-over-year growth in both revenues and orders was higher in the third quarter than in the second, despite growing off a larger base," said CEO Gary Niederpruem.
Niederpruem said the results reflected the company's manufacturing expansion, strong demand across its data center and grid end markets and its ability to deliver customized solutions at scale with short lead times.
"In an environment where speed-to-power and technical agility are defining project success, customers are increasingly choosing Forgent for our ability to deliver highly customized solutions with greater timeline certainty, supported by our vertical integration, agile manufacturing model and deep engineering expertise," Niederpruem added.
Guidance
Forgent expects fourth-quarter revenue between $392.00 million and $432.00 million, versus the consensus estimate of $328.18 million. The company also raised its fiscal-year 2026 guidance from between $1.27 billion and $1.32 billion to between $1.35 billion and $1.39 billion, versus the consensus estimate of $1.30 billion.
Forgent Shares Rise
FPS Price Action: At the time of publication, Forgent shares are trading 3.10% higher at $46.93, according to data from Benzinga Pro.
This illustration was generated using artificial intelligence via Midjourney.
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