Canadian printing firm Transcontinental's Q3 adj profit misses estimates

Transcontinental

09/09/2026 14:35

Overview
Canada retail marketing and printing firm's fiscal Q3 revenue rose, beating analyst expectations
Adjusted EPS for fiscal Q3 missed analyst expectations
Company attributed revenue growth to acquisitions and rollout of raddar

Outlook
Transcontinental expects fiscal 2026 adjusted operating earnings before depreciation and amortization to remain stable
Company anticipates lower volume in traditional activities, partially offset by growth in specialty areas
Transcontinental expects to reduce net indebtedness below two times adjusted operating earnings for fiscal 2026

Result Drivers
ACQUISITIONS AND RADDAR ROLLOUT - Co said revenue growth was mainly driven by recent acquisitions and the nationwide rollout of raddar
COST REDUCTION INITIATIVES - Co said cost reduction initiatives contributed to higher adjusted operating earnings
LOWER VOLUME - Lower volume in both main sectors partially offset revenue and earnings gains

Company press release: ID:nGNX2FTLyd

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
C$306 mln
C$295.23 mln (7 Analysts)
Q3 Adjusted EPS
Miss
C$0.32
C$0.38 (7 Analysts)
Q3 EPS
 
C$0.44
 
Q3 Adjusted Net Income
Miss
C$27.10 mln
C$32.23 mln (4 Analysts)
Q3 Net Income
 
C$36.90 mln
 
Q3 Operating Earnings
 
C$66.90 mln
 
Q3 Operating Earnings Before Depreciation & Amortization
 
C$85.70 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$7.00, about 33.6% above its September 8 closing price of C$5.24
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

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(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.)