The shares of PyroGenesis Canada (TSX:PYR)(NASDAQ:PYR) staged a sharp rally yesterday. The stock rose by nearly 12% to $5.27 per share on Tuesday morning before erasing some of these gains later during the session. PYR stock settled with about 4% gains for the day, as the company announced its Q2 earnings results.
PyroGenesis Canada is a Montréal-based tech firm that focuses on developing and commercializing advanced plasma processes and sustainable solutions to reduce the emission of greenhouse gases. Its proprietary and patented advanced plasma processes are fast becoming popular in several large industries like iron ore pelletization, aluminum, waste management, and additive manufacturing.
In the second quarter, PyroGenesis reported a record revenue of $8.3 million. It was nearly 32% higher than its revenue over the previous quarter and reflected a massive 289% growth on a year-over-year basis.
The strong revenue growth helped PyroGenesis report a positive net profit from operations of $850K in the second quarter. It was also significantly better compared to its $371K net loss from operations in Q2 2020. At the end of the June quarter, the company had $18.1 million in cash and cash equivalents.
The ongoing growth trend in PyroGenesis’s financials is strong. Q2 2021 was the fourth consecutive quarter when its quarterly revenue was higher than its annual revenue in 2019. Moreover, the company’s consistently growing backlog of signed contracts could help it post even stronger financial growth in the coming years.
I expect the demand for PyroGenesis’s patented advanced plasma technologies — which help businesses reduce greenhouse gases emission — to grow further in the coming years amid rising environmental concerns. The recently rising popularity of its technologies justifies why its stock rose by nearly 685% in 2020.
However, it hasn’t seen much appreciation this year so far, despite its significantly improving financial growth prospects. PYR stock price is currently hovering near $4.90 per share with 36% year-to-date gains against a 17% rise in the TSX Composite Index. Long-term investors could add this amazing and cheap high-tech stock to their portfolios right now before it resumes its rally in the coming months.
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The Motley Fool has no position in any of the stocks mentioned. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.