INNOVATE (NYSE:VATE) Issues Quarterly Earnings Results

INNOVATE (NYSE:VATE) posted its quarterly earnings results on Thursday. The company reported ($1.29) earnings per share for the quarter, topping the consensus estimate 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 Up 1.1%

INNOVATE stock traded up $0.14 during midday trading on Thursday, reaching $11.90. 33,753 shares of the stock traded hands, compared to its average volume of 32,622. The stock’s fifty day moving average is $8.17 and its 200-day moving average is $6.24. INNOVATE has a 12 month low of $3.75 and a 12 month high of $13.46. The stock has a market cap of $162.25 million, a P/E ratio of -2.45 and a beta of 2.27.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reissued a “sell (e+)” rating on shares of INNOVATE in a research note on Wednesday, January 21st. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, INNOVATE currently has a consensus rating of “Sell”.

Institutional Investors Weigh In On INNOVATE

Several institutional investors have recently modified their holdings of the stock. Jane Street Group LLC bought a new stake in shares of INNOVATE in the 4th quarter valued at approximately $51,000. Citadel Advisors LLC lifted 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 valued at $184,000 after purchasing an additional 14,163 shares during the last quarter. Bank of America Corp DE lifted 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 valued at $93,000 after purchasing an additional 2,236 shares during the last quarter. Finally, Squarepoint Ops LLC bought a new stake in shares of INNOVATE in the 3rd quarter valued at approximately $58,000. 34.28% of the stock is owned by 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.