Quarterhill (TSE:QTRH) Announces Earnings Results

Quarterhill (TSE:QTRH) posted its quarterly earnings data on Thursday. The company reported C($0.06) earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of C$53.68 million for the quarter. Quarterhill had a negative return on equity of 45.74% and a negative net margin of 37.72%.

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

• Quarterhill said Q1 revenue rose 14% year over year to $38.6 million, with gross margin improving to 28% and the company posting its third straight quarter of positive Adjusted EBITDA.
• Management highlighted a stronger balance sheet after a new $60 million credit facility plus a $100 million accordion, saying it replaces convertible debentures with non-dilutive financing and gives the company more flexibility for M&A.
• The company reported a $428.8 million backlog and said its pipeline is now above $2 billion, supporting multi-year revenue visibility and a growing share of higher-margin recurring work.
• Quarterhill announced major commercial wins, including an extended relationship with the Illinois Tollway, a new 5-year tolling contract with extension options, and a multi-million-dollar MassDOT Weigh-In-Motion award.
• Management said it expects margin expansion and continued positive Adjusted EBITDA through 2026 and 2027, with long-term goals of reaching about 20% EBITDA by exiting 2027, but it did not provide formal guidance.

Quarterhill Stock Performance

Shares of TSE QTRH traded up C$0.19 during mid-day trading on Thursday, reaching C$1.74. 857,271 shares of the company’s stock were exchanged, compared to its average volume of 151,270. The firm has a market capitalization of C$208.77 million, a price-to-earnings ratio of -3.70, a price-to-earnings-growth ratio of 0.46 and a beta of 0.14. Quarterhill has a 52 week low of C$0.89 and a 52 week high of C$1.77. The company has a debt-to-equity ratio of 71.62, a current ratio of 0.96 and a quick ratio of 2.58. The firm has a 50-day moving average price of C$1.29 and a two-hundred day moving average price of C$1.07.

Wall Street Analyst Weigh In

Separately, ATB Cormark Capital Markets lifted their price objective on shares of Quarterhill from C$2.00 to C$2.75 and gave the stock an “outperform” rating in a report on Monday, April 6th. One equities research analyst has rated the stock with a Buy rating, According to data from MarketBeat.com, the company currently has an average rating of “Buy” and an average target price of C$2.75.

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.