Quarterhill (TSE:QTRH) Announces Quarterly 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. Quarterhill had a negative net margin of 38.39% and a negative return on equity of 74.06%. 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 Price Performance

QTRH stock opened at C$2.50 on Thursday. The stock has a market capitalization of C$355.50 million, a price-to-earnings ratio of -5.81, a PEG ratio of 0.46 and a beta of -0.30. The firm’s 50-day moving average price is C$2.73 and its two-hundred day moving average price is C$2.02. The company has a current ratio of 1.11, a quick ratio of 2.58 and a debt-to-equity ratio of 72.06. Quarterhill has a 12-month low of C$0.89 and a 12-month high of C$3.33.

Analysts Set New Price Targets

QTRH has been the subject of several recent research reports. ATB Cormark Capital Markets upgraded Quarterhill from an “outperform” rating to a “top pick” rating and boosted their price objective for the company from C$4.40 to C$5.00 in a research report on Wednesday, July 29th. 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. One analyst has rated the stock with a Strong Buy rating. According to data from MarketBeat.com, the company presently has a consensus rating of “Strong Buy” and a consensus price target of C$4.50.

Insider Activity at Quarterhill

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

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.