Evertz Technologies (TSE:ET) Releases Earnings Results

Evertz Technologies (TSE:ET) released its quarterly earnings data on Wednesday. The company reported C$0.24 earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of C$139.33 million during the quarter. Evertz Technologies had a return on equity of 24.08% and a net margin of 12.62%.

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

• Record quarterly sales of CAD 139.3 million (up 5% sequentially) with recurring software & services revenue of CAD 62.5 million (~45% of sales), continuing a multi-quarter growth trend.
• Purchase order backlog exceeded CAD 246 million at end‑February and, together with CAD 32 million of February shipments, implies over CAD 278 million of near‑term revenue visibility.
• Cash fell to CAD 24.8 million from CAD 111.7 million after CAD 91 million of dividends (including a CAD 75.5 million special dividend), materially reducing short‑term liquidity.
• Heavy R&D investment (CAD 36.7 million, 26.4% of revenue) and a stable gross margin of 58.3% (within the 56–60% target) support product and IP/cloud leadership but keep operating investment elevated.
• Management noted a CAD 2.3 million foreign‑exchange loss, an inventory build to secure constrained components that used cash, and expects Q4 OpEx to rise ~CAD 1.5–2.0 million for the NAB trade show.

Evertz Technologies Trading Down 0.3%

Shares of TSE:ET opened at C$16.00 on Friday. The company has a current ratio of 2.14, a quick ratio of 0.68 and a debt-to-equity ratio of 10.31. The stock has a market capitalization of C$1.21 billion, a PE ratio of 19.05, a P/E/G ratio of 0.79 and a beta of 0.83. The firm has a fifty day moving average price of C$14.67 and a 200 day moving average price of C$13.37. Evertz Technologies has a 1 year low of C$9.45 and a 1 year high of C$16.24.

Evertz Technologies Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, December 24th. Investors of record on Wednesday, December 24th were given a dividend of $0.205 per share. The ex-dividend date of this dividend was Thursday, December 18th. This is a positive change from Evertz Technologies’s previous quarterly dividend of $0.20. This represents a $0.82 annualized dividend and a yield of 5.1%. Evertz Technologies’s payout ratio is presently 95.24%.

Analysts Set New Price Targets

Several brokerages have recently weighed in on ET. Royal Bank Of Canada lifted their target price on shares of Evertz Technologies from C$13.00 to C$15.00 and gave the company a “sector perform” rating in a research report on Tuesday. BMO Capital Markets boosted their price objective on shares of Evertz Technologies from C$14.00 to C$15.00 and gave the stock an “outperform” rating in a research report on Thursday, December 11th. Finally, Raymond James Financial upped their target price on Evertz Technologies from C$14.00 to C$18.00 in a research report on Thursday. One investment analyst has rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of C$16.00.

Evertz Technologies Company Profile

Evertz Technologies Ltd is a Canadian provider of telecommunications equipment and technology solutions to the television broadcast and new-media industries. Evertz equipment is used in the production, post-production and transmission of television content. Its solutions are sold to content creators, broadcasters, and service providers looking to support multi-channel digital and high definition television, and next generation Internet Protocol environments. More than half of the firm’s revenue is generated in the United States.