Canadian packaging firm Transcontinental Q3 revenue beats expectations

Transcontinental

04/09/2025 22:08

Overview

Transcontinental Inc Q3 revenue falls 2.2% yr/yr, but beats analyst expectations, per LSEG data

Adjusted EPS for Q3 beats estimates, rising 16.7% yr/yr

Outlook

Transcontinental expects organic growth in Packaging Sector earnings for fiscal 2025

Company anticipates higher earnings growth in Retail Services and Printing Sector

Transcontinental plans significant cash flow generation to reduce net indebtedness

Company's investments in flexible packaging to drive long-term growth

Result Drivers

PACKAGING SECTOR DECLINE - Revenue decreased due to sale of industrial packaging operations and weaker demand, impacting the Packaging Sector

RETAIL SERVICES GROWTH - Retail Services and Printing Sector saw a 4.5% revenue increase, driven by book printing activities

COST REDUCTION - Improved adjusted operating earnings margin in Packaging Sector due to cost reduction initiatives and favorable exchange rate

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
C$684.40 mln
C$679 mln (6 Analysts)
Q3 Adjusted EPS
Beat
C$0.7
C$0.69 (6 Analysts)
Q3 Adjusted Net Income
Miss
C$58.90 mln
C$59.10 mln (3 Analysts)
Q3 Net Income
C$38.70 mln
Q3 Operating Earnings
C$57.40 mln
Q3 Operating Earnings Before Depreciation & Amortization
C$109 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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$24.00, about 15.5% above its September 3 closing price of C$20.27

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

Press Release: ID:nGNX4X3MvH

(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.)