Why Are Engineered Pipe Services Provider Perma-Pipe's Shares Surging Today?

Perma-Pipe International Holdings Inc (NASDAQ:PPIH) shares are shooting higher after it reported third-quarter FY23 earnings.

The company reported third-quarter FY23 sales growth of 21% year-on-year to $45.7 million compared to $37.9 million last year.

The increase in revenue was primarily driven by an increased sales volume in Saudi Arabia.

Gross profit increased 18.9% year-on-year to $13.2 million, and the profit margin contracted to 29%.

General and administrative expenses for the quarter rose 8% to $5.7 million, reflecting higher payroll costs.

Operating income climbed 33.1% to $6 million, with an operating margin of 13.2%.

EPS for the quarter was $0.24 compared to $0.21 last year.

The company said the backlog has grown during each quarter this year and now stands at $73.1 million, representing approximately half of a year's revenues at the current run rate.

Price Action: PPIH shares are trading higher by 14.90% at $8.00 on the last check Friday.