Coda Octopus Group, a provider of underwater survey and inspection services to the oil and gas industry, has seen its shares surge by 9% after announcing strong earnings despite missing revenue expectations.
The company reported an increase in earnings per share of 15.4%, with adjusted profit before tax rising to £21.7 million for the year to December 2022. However, this was offset by a decline in revenue, which fell short of analyst forecasts.
Credit Suisse analysts noted that Coda Octopus' strong underlying performance had led to an 'earnings beat', which had been partly driven by cost savings and margin expansion. The company's shares have now risen for the third consecutive quarter, with a total increase of over 50% in the past year.
The strong performance has raised hopes that Coda Octopus may be able to buck the current trend of declining profit margins across the industry.