Why Neo Performance Materials Shares Are Surging Today

Neo Performance Materials Inc NEO NOPMF reported first-quarter revenue growth of 27.1% year-over-year to $166.28 million.
Adjusted EPS improved to $0.56 from $0.39 in 1Q21.
Volumes saw a decline of 16.6% Y/Y, reflecting the recent spike in COVID-19 in Asia, several natural disasters that impacted production facilities and customers, and the ongoing semiconductor chip shortage.
The gross margin expanded by 75 bps to 29.8%. The operating income increased to $28.68 million, and the margin expanded by 471 bps to 17.3%.
Adjusted EBITDA improved by 47.6% Y/Y to $33.12 million, and margin expanded 277 bps to 19.9%.
Dividend: The company declared a quarterly dividend of C$0.10 per common share for shareholders of record on June 20, 2022, with a payment date of June 28, 2022.
The company had a cash balance of $61.1 million at the end of the quarter.
"Our European downstream expansion plans are on track and we remain excited and encouraged with the progress made to date concerning our discussions with government officials in Estonia and with the relevant EU Institutions in Brussels -- as well as with prospective OEM and Tier 1 and 2 customers in Europe - who are providing strong early indications of interest leading us to believe the first phase of our plans could be sold out by its start of production," commented CEO Constantine Karayannopoulos.
Price Action: NEO shares are trading higher by 23.12% at C$13.10 on TSX, and NOPMF is higher by 25.52% at $10.16 on the last check Friday.

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