Greenland Technologies Shares Up After Q1 Earnings Beat, Sees Solid Demand Ahead

Greenland Technologies Holding Corporation GTEC shares are trading higher in the premarket session following a street-beating performance in the first quarter of FY23.

• The East Windsor, New Jersey-based company's Q1 revenue of $22.15 million beat the consensus estimate of $20.55 million. Revenue declined 24.4% year over year.
• Greenland Technologies registered an EPS of $0.11, beating the analyst consensus of ($0.02) loss. EPS slid 31.3% Y/Y.
• Solid margins, an improved mix of higher-value products, and operational efficiencies resulted in a street-beating performance in Q1. However, an unfavorable foreign exchange impact and logistical and supply chain challenges following the end of China's zero covid policies resulted in a Y/Y decline. 
• Transmission products sold were 36,841 units, down from 41,902 units sold a year ago.
• Gross profit plunged 13.3% Y/Y to $5.52 million. 
• Gross margin was 24.9%, up 320 basis points Y/Y, driven by a strategic shift in Greenland's product mix towards higher value and more sophisticated products, such as hydraulic transmissions.
• Income from operations fell 29.5% Y/Y to $2.37 million. 
• The company exited Q1 with cash and equivalents worth $15.4 million. 
• "We expect demand to improve in the second half of the year and continue to anticipate revenue growth for our core transmission business in 2023," said CEO Raymond Wang.

Price Action: GTEC shares are trading higher by 9.09% at $1.44 during the premarket session on Friday.