Is GP's Q4 2024 EPS growth sustainable?

GreenPower Motor's (GP) Q4 2024 EPS growth is not currently sustainable. Here's why:

1. Revenue Decline: Despite a reported revenue surge in Q2 2025, with a 78% increase and gross profit of approximately $460,000, the overall trend of revenue decline over the last twelve months is a cause for concern. A decrease of 53.79% as of Q1 2025 indicates that the company is struggling to maintain consistent revenue growth.
2. Profitability Challenges: The net margin for GP as of Q3 2025 is -179.8%, with an operating cash flow of -$3.21 million. This suggests that the company is not only losing money but also facing cash flow challenges, which is a red flag for sustainability.

3. Earnings Per Share (EPS) Analysis: While the EPS growth rate is positive at 10.53%, the fact that the EPS is negative (-$0.17) indicates that the company is not yet profitable enough to sustain positive EPS growth. In the absence of significant improvements in revenue and profitability, this growth may not be sustainable.

4. Analyst Ratings and Target: Despite the challenges, analysts have retained a "Buy" rating on GP, with a target price of $3.00, which suggests a potential for recovery. However, this does not guarantee the sustainability of Q4 2024's EPS growth.
5. Market Sentiment and Short Interest: A significant decrease in short interest could indicate improving market sentiment, but it does not directly address the sustainability of EPS growth.

In conclusion, while there are some positive indicators, such as the "Buy" rating and potential for sales growth, the overall financial health of GP, including the revenue decline and profitability challenges, suggest that the EPS growth in Q4 2024 may not be sustainable in the absence of a significant turnaround in the company's financial performance.