Quarterhill (TSE:QTRH) Releases Quarterly Earnings Results

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

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 Stock Performance

Shares of TSE:QTRH traded down C$0.31 during midday trading on Tuesday, reaching C$2.50. The company had a trading volume of 685,022 shares, compared to its average volume of 217,374. The stock has a market cap of C$355.50 million, a P/E ratio of -5.81, a P/E/G ratio of 0.46 and a beta of -0.30. The company’s 50 day moving average price is C$2.73 and its 200 day moving average price is C$2.00. The company has a current ratio of 1.19, a quick ratio of 2.58 and a debt-to-equity ratio of 93.85. Quarterhill has a 52-week low of C$0.89 and a 52-week high of C$3.33.

Insider Transactions at Quarterhill

In related news, Director Stephen A. Smith acquired 13,000 shares of the stock in a transaction on Friday, August 14th. The shares were acquired at an average price of C$3.04 per share, with a total value of C$39,520.00. Following the completion of the transaction, the director owned 30,000 shares in the company, valued at approximately 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

Several equities analysts have weighed in on QTRH shares. Canadian Imperial Bank of Commerce dropped their price objective on Quarterhill from C$4.50 to C$4.00 in a research note on Wednesday, September 30th. ATB Cormark Capital Markets upgraded shares of Quarterhill from an “outperform” rating to a “top pick” rating and upped their target price for the stock from C$4.40 to C$5.00 in a research note on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating. According to data from MarketBeat.com, Quarterhill has an average rating of “Strong Buy” and an average price target 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.