Overview

* Enghouse ( EGHSF ) Q3 revenue falls 3.8% yr/yr, missing analysts' expectations

* Adjusted EBITDA for Q3 misses estimates

* Co maintains strong cash position with C$271.6 mln, no external debt

Outlook

* Enghouse ( EGHSF ) plans to continue cost management measures to improve profitability

* Company aims to leverage cash resources for acquisitions

* Company sees ongoing macroeconomic uncertainty impacting market conditions

Result Drivers

* RECURRING REVENUE - Recurring revenue, including SaaS and maintenance services, accounted for 69.9% of total revenue, with a slight increase for the nine-month period

* COST ALIGNMENT - Strategic cost alignment and acquisition restructuring efforts led to special charges of approximately C$3.0 mln

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss C$125.58 C$129.50

Revenue mln mln (3

Analysts

)

Q3 EPS C$0.31

Q3 Net C$17.17

Income mln

Q3 Miss C$32.25 C$34.40

Adjusted mln mln (3

EBITDA Analysts

)

Q3 25.7%

Adjusted

EBITDA

Margin

Q3 C$49.90

Operatin mln

g

Expenses

Q3 C$21.43

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy."

* Wall Street's median 12-month price target for Enghouse Systems Ltd ( EGHSF ) is C$25.50, about 11.9% above its September 3 closing price of C$22.46

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)