Why did PPSI's Q4 2024 forecast raise eyebrows?

PPSI's Q4 2024 revenue forecast of $21 million to $23 million raised eyebrows due to the following reasons:

1. **Significant Increase in Q3 Revenue**: PPSI reported a 130% year-over-year revenue growth in its critical power business segment for Q3 2024. This substantial growth was driven by the expansion of the e-Boost business, which delivered multiple charging solutions to government and quasi-government sectors.
2. **Update to Full Year Guidance**: PPSI updated its full year 2024 revenue guidance to $52 to $54 million, representing year-over-year growth of approximately 30%. This guidance was more conservative than the Q3 performance, suggesting that the Q4 forecast of $21 million to $23 million was lower than anticipated.
3. **Market Expectations**: The consensus estimate for Q4 2024 revenue was higher than PPSI's forecast, with expectations around $24 million. This discrepancy led to concerns about the achievability of the forecast.
4. **Historical Performance**: PPSI's historical performance shows volatility, with a previous quarter's revenue missing expectations by a significant margin. This track record contributed to the skepticism surrounding the Q4 forecast.

In summary, the eyebrow-raising Q4 forecast was due to a combination of PPSI's strong Q3 performance, a conservative update to full year guidance, differing market expectations, and the company's historical variability in revenue achievement.