Altus Group (TSE:AIF) Releases Earnings Results

Altus Group (TSE:AIF) posted its earnings results on Thursday. The company reported C$0.53 EPS for the quarter, FiscalAI reports. Altus Group had a negative net margin of 3.42% and a negative return on equity of 2.76%. The firm had revenue of C$112.67 million for the quarter.

Here are the key takeaways from Altus Group’s conference call:

• Positive Sentiment: Altus reported Q2 revenue growth of 6% and Adjusted EBITDA growth of 34%, with margins expanding 540 basis points and Adjusted EPS rising 36%. Excluding the divested One11 business from the prior-year comparison, revenue and recurring revenue growth were approximately 7%.
• Positive Sentiment: Management raised full-year organic constant-currency revenue growth guidance to 5.25%-7.25% and increased its Adjusted EBITDA margin-expansion outlook by 60 basis points to 510-610 basis points, implying approximately CAD 127 million-CAD 131 million of Adjusted EBITDA.
• Positive Sentiment: Portfolio simplification is complete after four divestitures, while restructuring initiatives are expected to generate approximately CAD 15 million in annualized savings. Altus has returned about CAD 450 million to shareholders year-to-date, reducing its share count by roughly 20%, and expects further capital returns in the second half.
• Positive Sentiment: Software momentum remained strong, led by double-digit ARGUS Intelligence growth, 10.4% software ARR growth, 106.9% net revenue retention, and ARGUS gross retention above 95%. Cross-selling increased threefold year-over-year, and management cited improving sales execution and more million-dollar deals.
• Neutral Sentiment: Altus acquired U.K.-based Valos.ai, a profitable but financially small AI-enabled platform connecting property valuers and lenders. Management views it as a strategic tuck-in that expands access to lenders, adds valuation-focused data and AI capabilities, and could support cross-selling into Canada and other core markets, but it is not material to current financial guidance.

Altus Group Trading Up 15.1%

Shares of Altus Group stock opened at C$52.43 on Friday. Altus Group has a 12-month low of C$36.97 and a 12-month high of C$63.07. The company has a current ratio of 0.71, a quick ratio of 1.30 and a debt-to-equity ratio of 52.00. The stock has a market cap of C$1.88 billion, a PE ratio of -2,621.50, a price-to-earnings-growth ratio of 0.96 and a beta of 0.29. The company has a 50-day moving average of C$45.78 and a two-hundred day moving average of C$45.57.

Altus Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 15th were given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 1.1%. The ex-dividend date was Tuesday, June 30th. Altus Group’s dividend payout ratio is presently -3,000.00%.

Wall Street Analyst Weigh In

AIF has been the topic of several research reports. BMO Capital Markets raised their price objective on Altus Group from C$41.00 to C$50.00 and gave the stock a “sector perform” rating in a report on Friday. National Bank Financial raised their price target on Altus Group from C$41.00 to C$50.00 and gave the stock a “sector perform” rating in a research note on Friday. Finally, ATB Cormark Capital Markets upped their target price on shares of Altus Group from C$56.00 to C$57.10 and gave the company an “outperform” rating in a report on Friday. Three equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, Altus Group has an average rating of “Hold” and an average price target of C$55.64.

Insider Activity at Altus Group

In other news, Director William Brennan purchased 2,000 shares of the stock in a transaction that occurred on Thursday, May 28th. The shares were acquired at an average price of C$42.90 per share, for a total transaction of C$85,800.00. Following the acquisition, the director directly owned 3,529,831 shares in the company, valued at approximately C$151,429,749.90. The trade was a 0.06% increase in their position. Over the last 90 days, insiders purchased 190,392 shares of company stock worth $8,052,187. 4.05% of the stock is owned by insiders.

About Altus Group

Altus Group Ltd operates in the Canadian real estate sector. Its services can be summed up as advisory services, software and data solutions to the property and real estate industry. The company has three reportable segments namely Altus Analytics, Commercial Real Estate Consulting, and Geomatics. It generates maximum revenue from the Commercial Real Estate Consulting segment. A part of its revenue is also derived from the United States, Europe, and the Asia Pacific.