Overview

* Transcontinental Inc ( TCLAF ) Q3 revenue falls 2.2% yr/yr, but beats analyst expectations, per LSEG data

* Adjusted EPS for Q3 beats estimates, rising 16.7% yr/yr

Outlook

* Transcontinental expects organic growth in Packaging Sector earnings for fiscal 2025

* Company anticipates higher earnings growth in Retail Services and Printing Sector

* Transcontinental plans significant cash flow generation to reduce net indebtedness

* Company's investments in flexible packaging to drive long-term growth

Result Drivers

* PACKAGING SECTOR DECLINE - Revenue decreased due to sale of industrial packaging operations and weaker demand, impacting the Packaging Sector

* RETAIL SERVICES GROWTH - Retail Services and Printing Sector saw a 4.5% revenue increase, driven by book printing activities

* COST REDUCTION - Improved adjusted operating earnings margin in Packaging Sector due to cost reduction initiatives and favorable exchange rate

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat C$684.40 C$679

Revenue mln mln (6

Analysts

)

Q3 Beat C$0.7 C$0.69

Adjusted (6

EPS Analysts

)

Q3 Miss C$58.90 C$59.10

Adjusted mln mln (3

Net Analysts

Income )

Q3 Net C$38.70

Income mln

Q3 C$57.40

Operatin mln

g

Earnings

Q3 C$109

Operatin mln

g

Earnings

Before

Deprecia

tion &

Amortiza

tion

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the non-paper containers & packaging peer group is "buy"

* Wall Street's median 12-month price target for Transcontinental Inc ( TCLAF ) is C$24.00, about 15.5% above its September 3 closing price of C$20.27

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 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.)