Overview

  • Canada supply chain software firm's fiscal Q4 revenue rose to record C$50 mln

  • Adjusted EBITDA for fiscal Q4 climbed 56% to C$6.7 mln

  • Company posted net loss on C$4.7 mln restructuring costs

Outlook

  • Tecsys sees FY27 total revenue growth of 2-4%

  • Company expects FY27 Elite SaaS revenue growth of 18-20%

  • Tecsys forecasts FY27 adjusted EBITDA margin of 11-13%

Result Drivers

  • SAAS GROWTH - Q4 revenue was driven by a 21% increase in Elite SaaS revenue and 17% growth in total SaaS revenue

  • CUSTOMER ENGAGEMENT - Co cited strong customer engagement and demand for connected supply chain solutions

Company press release:

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Net Loss

C$200,000

Q4 Adjusted EBITDA

C$6.70 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "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 Tecsys Inc is C$40.00, about 13.6% above its June 26 closing price of C$35.21

  • The stock recently traded at 49 times the next 12-month earnings vs. a P/E of 35 three months ago

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