Canada's Transcontinental tops Q1 revenue estimates on recent acquisitions

Transcontinental

10/03/2026 13:23

Overview

Canada retail marketing firm's Q1 revenue rose 2.3%, beating analyst expectations

Adjusted EPS for Q1 missed analyst expectations

Company announced sale of Packaging Business and new CEO appointment

Outlook

Transcontinental expects fiscal 2026 adjusted operating earnings to remain stable year-over-year

Company anticipates lower volumes in traditional activities, offset by in-store marketing growth

Company expects adjusted net indebtedness ratio to rise, improving in Q4 fiscal 2026

Result Drivers

RECENT ACQUISITIONS - Revenue increase attributed to recent acquisitions and favorable exchange rates, despite lower volumes and price concessions

SALE OF PACKAGING BUSINESS - Sale expected to significantly reduce net indebtedness and refocus on core activities

LOWER VOLUME AND PRICE CONCESSIONS - Decrease in operating earnings due to lower volumes and price concessions in Retail Services and Printing Sector

Company press release: ID:nGNX31d7CK

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
C$263.50 mln
C$253.50 mln (6 Analysts)
Q1 Adjusted EPS
Miss
C$0.08
C$0.16 (5 Analysts)
Q1 Adjusted Net Income
Miss
C$6.70 mln
C$18.40 mln (3 Analysts)
Q1 Net Income
-C$200,000
Q1 Operating Earnings
C$8.20 mln
Q1 Operating Earnings Before Depreciation & Amortization
C$26.10 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the non-paper containers & packaging peer group is "buy"

Wall Street's median 12-month price target for Transcontinental Inc is C$28.00, about 19.3% above its March 9 closing price of C$23.47

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 8 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.)