Evertz Technologies (TSE:ET) Announces Earnings Results

Evertz Technologies (TSE:ET) issued its earnings results on Wednesday. The company reported C$0.24 earnings per share for the quarter, FiscalAI reports. Evertz Technologies had a return on equity of 24.08% and a net margin of 12.62%.The business had revenue of C$139.33 million during the quarter.

Here are the key takeaways from Evertz Technologies’ conference call:

• Record quarterly sales of CAD 139.3 million (up 5% sequentially) with recurring software & services revenue of CAD 62.5 million (~45% of sales), continuing a multi-quarter growth trend.
• Purchase order backlog exceeded CAD 246 million at end‑February and, together with CAD 32 million of February shipments, implies over CAD 278 million of near‑term revenue visibility.
• Cash fell to CAD 24.8 million from CAD 111.7 million after CAD 91 million of dividends (including a CAD 75.5 million special dividend), materially reducing short‑term liquidity.
• Heavy R&D investment (CAD 36.7 million, 26.4% of revenue) and a stable gross margin of 58.3% (within the 56–60% target) support product and IP/cloud leadership but keep operating investment elevated.
• Management noted a CAD 2.3 million foreign‑exchange loss, an inventory build to secure constrained components that used cash, and expects Q4 OpEx to rise ~CAD 1.5–2.0 million for the NAB trade show.

Evertz Technologies Stock Performance

Shares of Evertz Technologies stock opened at C$16.05 on Thursday. The company has a market capitalization of C$1.21 billion, a PE ratio of 19.11, a P/E/G ratio of 0.79 and a beta of 0.74. The company has a 50-day simple moving average of C$14.62 and a two-hundred day simple moving average of C$13.35. Evertz Technologies has a one year low of C$9.45 and a one year high of C$16.24. The company has a debt-to-equity ratio of 10.31, a quick ratio of 0.68 and a current ratio of 2.14.

Evertz Technologies Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, December 24th. Shareholders of record on Wednesday, December 24th were paid a $0.205 dividend. This represents a $0.82 annualized dividend and a yield of 5.1%. This is a boost from Evertz Technologies’s previous quarterly dividend of $0.20. The ex-dividend date was Thursday, December 18th. Evertz Technologies’s payout ratio is presently 95.24%.

Analyst Ratings Changes

ET has been the subject of several recent research reports. Royal Bank Of Canada upped their price objective on shares of Evertz Technologies from C$13.00 to C$15.00 and gave the stock a “sector perform” rating in a research note on Tuesday. BMO Capital Markets raised their target price on shares of Evertz Technologies from C$14.00 to C$15.00 and gave the company an “outperform” rating in a research report on Thursday, December 11th. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat.com, Evertz Technologies presently has an average rating of “Moderate Buy” and a consensus price target of C$14.67.

About Evertz Technologies

Evertz Technologies Ltd is a Canadian provider of telecommunications equipment and technology solutions to the television broadcast and new-media industries. Evertz equipment is used in the production, post-production and transmission of television content. Its solutions are sold to content creators, broadcasters, and service providers looking to support multi-channel digital and high definition television, and next generation Internet Protocol environments. More than half of the firm’s revenue is generated in the United States.