Topic: How To Invest

The Successful Investor Hotline – Friday, June 11, 2021

Article Excerpt

TRANSCONTINENTAL INC., $25.75, Toronto symbol TCL.A, remains a buy for aggressive investors. The company is Canada’s leading commercial printer. It also makes plastic packaging for consumer and industrial products. Transcontinental’s overall revenue in its fiscal 2021 second quarter, ended April 25, 2021, fell 0.3%, to $623.3 million from $625.1 million a year earlier. That missed the consensus forecast of $626.2 million. The lower revenues are mainly due to unfavourable foreign exchange rates. If you factor out currency rates and the contribution of acquisitions, revenue improved 3.6% in the latest quarter. In response to the pandemic, Transcontinental launched a new cost-cutting plan at the printing division. If you exclude unusual items, earnings per share gained 10.0%, to $0.55 from $0.50. That topped the consensus estimate of $0.45. Transcontinental’s printing volumes continue to improve as the economy re-opens and businesses spend more on advertising. That will help offset higher costs for plastic resins at its packaging division. Transcontinental is a buy. Transcontinental recent coverage: March 2021 issue January…

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