Transcontinental (TSE:TCL.A) Posts Quarterly Earnings Results

Transcontinental (TSE:TCL.A) released its quarterly earnings data on Tuesday. The company reported C$0.08 EPS for the quarter, FiscalAI reports. The firm had revenue of C$263.50 million for the quarter. Transcontinental had a return on equity of 6.16% and a net margin of 4.05%.

Here are the key takeaways from Transcontinental’s conference call:

• Sale and shareholder return: The company completed the sale of its packaging business and the board approved a CAD 20 per share special dividend to be paid on March 20, returning most proceeds to shareholders.
• Leadership transition: Sam Bendavid will become CEO effective April 6 with Pat Braley as newly created COO, both internal promotions the board says will focus the company on disciplined, profitable growth.
• Quarterly financials: Q1 continuing-operations revenue rose 2.3% (driven by ISM acquisitions and FX), but adjusted EBITDA fell 17.9% to CAD 33.1m and adjusted EPS was CAD 0.08 (vs CAD 0.10) due to lower volumes and price concessions.
• Near-term cash, leverage and refinancing: Adjusted net indebtedness was 1.69x; management expects leverage to rise over the next two quarters before improving in Q4, closed a revised credit agreement to refinance July 2026 notes, and expects a near-term real-estate sale of ~CAD 30m.
• Growth initiatives and M&A pipeline: Management plans to expand retail/printing and education businesses (including rolling out raddar in Ontario with potential national deployment within 12 months) and continues to integrate ISM acquisitions with another deal expected to close in Q2.

Transcontinental Stock Up 1.0%

Transcontinental stock opened at C$23.43 on Thursday. The firm has a market cap of C$1.96 billion, a price-to-earnings ratio of 11.49, a P/E/G ratio of 6.05 and a beta of 0.74. The firm has a fifty day moving average price of C$23.19 and a two-hundred day moving average price of C$21.38. Transcontinental has a fifty-two week low of C$15.97 and a fifty-two week high of C$25.65. The company has a debt-to-equity ratio of 54.12, a current ratio of 1.49 and a quick ratio of 1.09.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the stock. Royal Bank Of Canada lifted their price objective on shares of Transcontinental from C$26.00 to C$29.00 and gave the company an “outperform” rating in a research note on Friday, December 12th. National Bank Financial boosted their price target on Transcontinental from C$24.00 to C$28.00 and gave the stock an “outperform” rating in a research report on Tuesday, December 9th. BMO Capital Markets upped their price target on Transcontinental from C$23.00 to C$27.00 in a research note on Tuesday, December 9th. TD Securities increased their price objective on Transcontinental from C$27.00 to C$28.00 and gave the company a “buy” rating in a report on Tuesday, December 9th. Finally, Scotiabank raised their price objective on Transcontinental from C$23.25 to C$26.00 and gave the company a “sector perform” rating in a research note on Tuesday, December 9th. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of C$27.33.

Transcontinental Company Profile

Transcontinental, or TC Transcontinental, is a Canadian printer and flexible packaging provider that operates in three segments: packaging, printing, and other. Its packaging segment features the production of different plastic products geared toward consumer goods. Production plants specialize in extrusion, lamination, printing, and converting. The company offers premedia, printing, and distribution services through the printing segment. Publishers, retailers, cataloguers, and marketers are some of the customers who tap TC Transcontinental for these printing solutions.