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TCS — Tecsys News Story

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Canada's Tecsys Q4 revenue hits record, posts net loss on restructuring costs

Canada's Tecsys Q4 revenue hits record, posts net loss on restructuring costs


Overview

  • Canada supply chain software firm's fiscal Q4 revenue rose to record C$50 mln

  • Adjusted EBITDA for fiscal Q4 climbed 56% to C$6.7 mln

  • Company posted net loss on C$4.7 mln restructuring costs


Outlook

  • Tecsys sees FY27 total revenue growth of 2-4%

  • Company expects FY27 Elite SaaS revenue growth of 18-20%

  • Tecsys forecasts FY27 adjusted EBITDA margin of 11-13%


Result Drivers

  • SAAS GROWTH - Q4 revenue was driven by a 21% increase in Elite SaaS revenue and 17% growth in total SaaS revenue

  • CUSTOMER ENGAGEMENT - Co cited strong customer engagement and demand for connected supply chain solutions


Company press release: ID:nCNW6B5Ska


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Net Loss

C$200,000

Q4 Adjusted EBITDA

C$6.70 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Tecsys Inc is C$40.00, about 13.6% above its June 26 closing price of C$35.21

  • The stock recently traded at 49 times the next 12-month earnings vs. a P/E of 35 three months ago


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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