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

Transcontinental (TSE:TCL.AGet Free Report) issued its quarterly earnings results on Thursday. The company reported C$0.19 earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of C$269.20 million during 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 Stock Performance

Shares of TCL.A stock opened at C$4.71 on Friday. Transcontinental has a one year low of C$4.16 and a one year high of C$25.65. The company’s 50-day moving average is C$5.37 and its 200 day moving average is C$16.31. The company has a market capitalization of C$393.85 million, a price-to-earnings ratio of 2.72, a price-to-earnings-growth ratio of 6.05 and a beta of 0.53. The company has a debt-to-equity ratio of 54.12, a quick ratio of 1.09 and a current ratio of 1.49.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the stock. TD Securities decreased their price target on shares of 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. ATB Cormark Capital Markets decreased their price target on shares of 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. Finally, BMO Capital Markets decreased their price target on shares of 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 issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of C$18.61.

Read Our Latest Stock Report on Transcontinental

Transcontinental Company Profile

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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.

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