Evertz Technologies (TSE:ET) Releases Earnings Results

Evertz Technologies (TSE:ET) issued its quarterly earnings results on Monday. The company reported C$0.10 earnings per share (EPS) for the quarter, FiscalAI reports. Evertz Technologies had a return on equity of 27.67% and a net margin of 12.40%.The company had revenue of C$118.26 million during the quarter.

Here are the key takeaways from Evertz Technologies’ conference call:

• Positive Sentiment: Revenue rose 5.5% year over year to CAD 118.3 million, led by a 14% increase in software and services revenue to CAD 58.9 million, nearly half of total sales. International revenue also increased 17.5% to CAD 38.3 million.
• Positive Sentiment: Demand indicators remained strong, with purchase-order backlog exceeding CAD 259 million at the end of August and an additional CAD 30 million shipped during the month. Management said the backlog increase was relatively broad-based, including government-related and CAD 5 million–CAD 10 million contracts.
• Negative Sentiment: Gross margin declined to 58.6% from 61.4% a year earlier, while net earnings were CAD 8 million, or CAD 0.10 per diluted share. Management said margins remain within its target range and are not currently expected to decline further.
• Negative Sentiment: Cash fell sharply to CAD 2.5 million from CAD 19.1 million at fiscal year-end, primarily because the company invested about CAD 20 million in raw-material inventory to address longer lead times for memory, storage, and servers tied to AI-related demand. Management said it is not currently experiencing material component shortages or tariff pressure.

Evertz Technologies Stock Performance

Shares of ET opened at C$14.85 on Tuesday. The firm’s fifty day moving average is C$16.25 and its two-hundred day moving average is C$16.35. The company has a quick ratio of 0.68, a current ratio of 1.63 and a debt-to-equity ratio of 6.93. The stock has a market cap of C$1.12 billion, a PE ratio of 17.89, a price-to-earnings-growth ratio of 0.79 and a beta of 0.70. Evertz Technologies has a 52-week low of C$12.00 and a 52-week high of C$21.50.

Evertz Technologies Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, July 13th. Shareholders of record on Monday, July 13th were paid a dividend of $0.205 per share. This represents a $0.82 annualized dividend and a yield of 5.5%. The ex-dividend date was Monday, July 6th. Evertz Technologies’s payout ratio is 97.59%.

Analyst Upgrades and Downgrades

Separately, Canaccord Genuity Group increased their price target on Evertz Technologies from C$17.50 to C$18.00 and gave the stock a “buy” rating in a report on Thursday, June 25th. Two equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, Evertz Technologies currently has an average rating of “Moderate Buy” and a consensus target price of C$16.50.

About Evertz Technologies

Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the production, post-production and transmission of video content. The Company’s solutions are purchased by the television broadcast, telecommunications, professional audio-visual, content creator, advanced education, government, military, enterprise, and new media sectors to support increasingly complex multi-channel digital and high-definition, Ultra HD, and high dynamic range formats and next generation high bandwidth low latency IP network environments.