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Bond yields, which act as a benchmark for how much it costs companies to borrow money, rose this week as the market prepared for more interest rate hikes. This is a trend to watch for Hammond because it is currently spending heavily to build new manufacturing space in North America and Europe.
While the company has a large backlog of orders for its electrical transformers, a sustained rise in borrowing costs could make these expansion projects more expensive to finish. If rates stay high, it might leave less profit for shareholders even as the company sells more equipment to data centers.
Source: CNBC
The company has beaten analyst expectations for three straight quarters. This suggests the business is growing faster than outsiders can model as it scales to meet data center demand.
| Expectation | |
|---|---|
| EPS | $2.01 |
| Revenue | $278M |