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

Transcontinental (TSE:TCL.A) issued its earnings results on Thursday. The company reported C$0.19 EPS for the quarter, FiscalAI reports. The company had revenue of C$269.20 million for the quarter. Transcontinental had a net margin of 4.05% and a return on equity of 6.16%.

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

• TC Transcontinental expects stronger second-half results as new contracts, cost reductions, and improving organic trends in its businesses begin to flow through.
• The company is rolling out raddar nationally in mid-June, positioning it as a tech-enabled flyer and media platform with early bookings described as encouraging, though management said it is too early to quantify the contribution.
• Management said the recently signed Postmedia and Glacier Media agreements should help strengthen results starting in Q3, and it also expects benefits from ongoing cost optimization.
• Q2 revenue fell 5% and adjusted EBITDA was slightly lower year over year, mainly due to lower traditional volumes, partly offset by acquisitions and a stronger U.S. dollar.
• The company used packaging-sale proceeds to pay a $20 per share special distribution and reduce debt by about $330 million; net debt stood at 2.14x and is expected to end fiscal 2026 around 1.75x, excluding acquisitions.

Transcontinental Trading Down 9.4%

TCL.A stock traded down C$0.49 during trading on Thursday, reaching C$4.73. 1,147,783 shares of the stock traded hands, compared to its average volume of 769,554. The business’s 50 day moving average price is C$5.37 and its 200-day moving average price is C$16.42. Transcontinental has a 52-week low of C$4.16 and a 52-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. The firm has a market capitalization of C$395.52 million, a PE ratio of 2.73, a P/E/G ratio of 6.05 and a beta of 0.53.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the company. ATB Cormark Capital Markets cut their target price on Transcontinental from C$27.00 to C$7.00 and set an “outperform” rating for the company in a research note on Tuesday, April 7th. TD Securities dropped their price objective on Transcontinental from C$28.00 to C$8.00 and set a “buy” rating for the company in a research note on Tuesday, March 24th. Finally, BMO Capital Markets dropped their price objective on Transcontinental from C$27.00 to C$6.25 in a research note on Tuesday, March 24th. Four equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of C$18.61.

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.