Overview
AAON Q3 net sales up 17.4% to $384.2 mln, driven by BASX demand
GAAP diluted EPS down 41.3% yr/yr, but up 94.7% sequentially
Record backlog of $1.32 bln, up 103.8% yr/yr, indicating market share gains
Outlook
AAON expects FY25 sales growth in mid-teens vs low-teens earlier
Company anticipates FY25 gross profit margin of 28.0%-28.5%
Result Drivers
BASX DEMAND - BASX-branded sales rose 95.8% driven by increased demand for liquid cooling equipment in data centers
ERP IMPROVEMENTS - Sequential gross margin improvement attributed to higher production volumes and ERP system optimization
MARKET SHARE GAINS - Record backlog and strong bookings trends indicate continued market share gains
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Gross Margin
31.50%
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electrical components & equipment peer group is "buy"
Wall Street's median 12-month price target for Aaon Inc is $107.00, about 12.7% above its November 5 closing price of $93.46
The stock recently traded at 50 times the next 12-month earnings vs. a P/E of 35 three months ago
Press Release: ID:nPnbwCqZka
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
