Evertz Technologies (TSE:ET) Posts Earnings Results

Evertz Technologies (TSE:ET) released its quarterly earnings results on Monday. The company reported C$0.10 earnings per share for the quarter, FiscalAI reports. The business had revenue of C$118.26 million during the quarter. Evertz Technologies had a return on equity of 27.67% and a net margin of 12.40%.

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

• Positive Sentiment: Revenue rose 5.5% year over year to CAD 118.3 million, led by a 14% increase in software and services revenue to CAD 58.9 million, nearly half of total sales. International revenue also increased 17.5% to CAD 38.3 million.
• Positive Sentiment: Demand indicators remained strong, with purchase-order backlog exceeding CAD 259 million at the end of August and an additional CAD 30 million shipped during the month. Management said the backlog increase was relatively broad-based, including government-related and CAD 5 million–CAD 10 million contracts.
• Negative Sentiment: Gross margin declined to 58.6% from 61.4% a year earlier, while net earnings were CAD 8 million, or CAD 0.10 per diluted share. Management said margins remain within its target range and are not currently expected to decline further.
• Negative Sentiment: Cash fell sharply to CAD 2.5 million from CAD 19.1 million at fiscal year-end, primarily because the company invested about CAD 20 million in raw-material inventory to address longer lead times for memory, storage, and servers tied to AI-related demand. Management said it is not currently experiencing material component shortages or tariff pressure.

Evertz Technologies Stock Performance

TSE ET remained flat at C$14.85 on Monday. The company’s stock had a trading volume of 26,312 shares, compared to its average volume of 30,629. The company has a debt-to-equity ratio of 6.93, a current ratio of 1.63 and a quick ratio of 0.68. The stock has a market capitalization of C$1.12 billion, a P/E ratio of 17.89, a P/E/G ratio of 0.79 and a beta of 0.70. Evertz Technologies has a 12-month low of C$12.00 and a 12-month high of C$21.50. The company has a fifty day moving average price of C$16.30 and a 200-day moving average price of C$16.36.

Evertz Technologies Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, July 13th. Investors of record on Monday, July 13th were issued a $0.205 dividend. This represents a $0.82 annualized dividend and a yield of 5.5%. The ex-dividend date of this dividend was Monday, July 6th. Evertz Technologies’s payout ratio is currently 97.59%.

Analyst Upgrades and Downgrades

Separately, Canaccord Genuity Group lifted their price target on shares of Evertz Technologies from C$17.50 to C$18.00 and gave the company a “buy” rating in a report on Thursday, June 25th. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of C$16.50.

Evertz Technologies Company Profile

Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the production, post-production and transmission of video content. The Company’s solutions are purchased by the television broadcast, telecommunications, professional audio-visual, content creator, advanced education, government, military, enterprise, and new media sectors to support increasingly complex multi-channel digital and high-definition, Ultra HD, and high dynamic range formats and next generation high bandwidth low latency IP network environments.