Quarterhill (TSE:QTRH) Posts Earnings Results

Quarterhill (TSE:QTRH) issued its earnings results on Tuesday. The company reported C($0.19) earnings per share for the quarter, FiscalAI reports. The business had revenue of C$61.44 million for the quarter. Quarterhill had a negative return on equity of 56.86% and a negative net margin of 31.81%.

Here are the key takeaways from Quarterhill’s conference call:

• Third-quarter revenue rose 9% year over year to $43.2 million, the highest quarterly level since 2022, while gross margin increased to 29% and Adjusted EBITDA reached $3.9 million. This was the company’s fifth consecutive quarter of positive Adjusted EBITDA.
• Quarterhill highlighted contract wins across tolling and commercial vehicle technology, including a roughly $28.2 million L.A. Metro subcontract and a $5.25 million Oklahoma deployment. Revenue backlog stood at $418.9 million at quarter-end.
• A share placement and subsequent transactions strengthened the balance sheet: Quarterhill repaid its CAD 57.5 million convertible debentures and received $8.5 million from selling its remaining WiLAN interest and an early earnout payment. The share issuance also added about 20.9 million shares, while eliminating the debentures removes a potential source of dilution and interest expense.
• Cash used in operations was $8.6 million, versus $6.4 million generated a year earlier, primarily due to costs related to the proposed Conduent tolling acquisition. The acquisition had not closed and remained subject to closing conditions, including TSX approval.

Quarterhill Price Performance

QTRH stock opened at C$2.56 on Wednesday. The company has a market capitalization of C$364.03 million, a P/E ratio of -5.95, a PEG ratio of 0.46 and a beta of -0.30. Quarterhill has a twelve month low of C$0.89 and a twelve month high of C$3.33. The business has a 50 day simple moving average of C$2.73 and a 200-day simple moving average of C$2.01. The company has a current ratio of 1.19, a quick ratio of 2.58 and a debt-to-equity ratio of 93.85.

Insider Activity

In other Quarterhill news, Director Stephen A. Smith bought 13,000 shares of the business’s stock in a transaction dated Friday, August 14th. The shares were acquired at an average cost of C$3.04 per share, with a total value of C$39,520.00. Following the acquisition, the director directly owned 30,000 shares of the company’s stock, valued at C$91,200. The trade was a 76.47% increase in their position. Company insiders own 1.72% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on QTRH shares. ATB Cormark Capital Markets raised shares of Quarterhill from an “outperform” rating to a “top pick” rating and increased their target price for the company from C$4.40 to C$5.00 in a research report on Wednesday, July 29th. Canadian Imperial Bank of Commerce reduced their price target on shares of Quarterhill from C$4.50 to C$4.00 in a research report on Wednesday, September 30th. One research analyst has rated the stock with a Strong Buy rating. According to data from MarketBeat, the company presently has an average rating of “Strong Buy” and a consensus target price of C$4.50.

Quarterhill Company Profile

Quarterhill is a global leader in the Intelligent Transportation System (ITS) industry, advancing mobility through smart infrastructure solutions that reduce congestion, improve roadway safety, and create more sustainable travel. Each year, Quarterhill’s platforms process billions of transactions, perform compliance and safety inspections on millions of commercial vehicles, and enable transportation agencies worldwide to optimize thousands of lanes of traffic to improve travel for everyone. Leveraging advanced artificial intelligence and machine learning technologies, Quarterhill’s platform delivers automation and predictive insight to help agencies manage transportation networks more efficiently.