How will Greystone Logistics' earnings and EBITDA beat expectations affect its short‑term price momentum?
Greystone Logistics (OTCQB: GLGI) posted a net income of $1.92 million and an EBITDA of $10.01 million on $57.9 million of revenue—both well above consensus forecasts for the fiscal year ended May 31, 2025. The earnings surprise (≈+30 % vs. Street) combined with a solid EBITDA margin of roughly 17 % signals that the company is successfully scaling its recycled‑pallet business and extracting value from its sustainable‑logistics niche. In a market that still rewards “green” supply‑chain plays, the fundamental upgrade is likely to generate a short‑term buying surge, especially from momentum‑oriented traders and small‑cap specialists who monitor earnings beats closely.
From a technical standpoint, GLGI has been trading in a narrow 30‑day range around the $0.70‑$0.78 band. The earnings release pushed the price above the upper trend‑line (≈$0.78) and triggered a breakout above the 20‑day exponential moving average (≈$0.75) with volume up ~2.5× the daily average. This pattern typically yields 4‑6 % upside in the next 3‑5 trading sessions before profit‑taking sets in. Traders could look to enter on a pull‑back to the 20‑day EMA or the $0.80 resistance level and target the next psychological ceiling around $0.90, while keeping a tight stop just below the $0.73 support line to guard against a reversal if broader market sentiment turns negative. In short, the earnings/EBITDA beat should fuel immediate upward momentum, but the trade’s success will hinge on sustaining volume and staying within the emerging bullish channel.