INNOVATE (NYSE:VATE) Announces Earnings Results

INNOVATE (NYSE:VATE) announced its quarterly earnings results on Thursday. The company reported ($1.29) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($2.18) by $0.89, Zacks reports.

Here are the key takeaways from INNOVATE’s conference call:

• Consolidated Q1 revenue rose 33% to $364.8 million, and adjusted EBITDA improved to $19.7 million from $7.2 million a year ago, helped by stronger infrastructure and life sciences performance.
• Infrastructure remained the growth engine, with DBM Global revenue up 35.1% to $357.9 million and adjusted EBITDA of $23 million, while adjusted backlog stayed at a robust $1.8 billion and management highlighted early progress on 2027 backlog.
• Life Sciences made regulatory and clinical progress, including CE mark approval for the TGFR Monitor and reusable sensor, successful audit completion, and multiple IDE approvals that should support upcoming clinical enrollment.
• R2 saw solid demand momentum with $1.6 million in Q1 revenue, $2.2 million in total demand, and a backlog of about 160 systems globally, though management said the business is looking to raise external capital to continue its progress.
• Spectrum continued to face pressure from softer advertising demand and network cancellations, as revenue fell to $5.3 million and adjusted EBITDA slipped to $0.7 million, even as the company pointed to regulatory and strategic opportunities ahead.

INNOVATE Stock Performance

Shares of NYSE:VATE traded up $0.14 on Thursday, reaching $11.90. The company’s stock had a trading volume of 33,753 shares, compared to its average volume of 32,622. INNOVATE has a 52-week low of $3.75 and a 52-week high of $13.46. The company has a market cap of $162.25 million, a P/E ratio of -2.45 and a beta of 2.27. The company has a 50-day simple moving average of $8.03 and a 200 day simple moving average of $6.20.

Analyst Ratings Changes

Separately, Weiss Ratings reiterated a “sell (e+)” rating on shares of INNOVATE in a report on Wednesday, January 21st. One equities research analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the company currently has an average rating of “Sell”.

Hedge Funds Weigh In On INNOVATE

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Jane Street Group LLC purchased a new position in shares of INNOVATE in the 4th quarter worth $51,000. Citadel Advisors LLC grew its stake in shares of INNOVATE by 60.2% in the 3rd quarter. Citadel Advisors LLC now owns 37,694 shares of the company’s stock worth $184,000 after buying an additional 14,163 shares in the last quarter. Bank of America Corp DE grew its stake in shares of INNOVATE by 13.4% in the 3rd quarter. Bank of America Corp DE now owns 18,962 shares of the company’s stock worth $93,000 after buying an additional 2,236 shares in the last quarter. Finally, Squarepoint Ops LLC purchased a new position in shares of INNOVATE in the 3rd quarter worth $58,000. 34.28% of the stock is owned by hedge funds and other institutional investors.

About INNOVATE

INNOVATE Corp., through its subsidiaries, operates in infrastructure, life sciences, and spectrum areas in the United States. The Infrastructure segment provides industrial construction, structural steel, and facility maintenance services, such as fabrication and erection of structural steel and heavy steel plate services, and large-diameter water pipes and water storage tanks; fabrication of trusses and girders; and 3-D building information modeling and detailing for commercial, industrial, and infrastructure construction projects, such as buildings and office complexes, hotels and casinos, convention centers, sports arenas and stadiums, shopping malls, hospitals, dams, bridges, mines, metal processing, refineries, pulp and paper mills, and power plants.