Altus Group (TSE:AIF) Issues Earnings Results

Altus Group (TSE:AIF) issued its quarterly earnings results on Thursday. The company reported C$0.53 earnings per share (EPS) for the quarter, FiscalAI reports. Altus Group had a negative return on equity of 2.76% and a negative net margin of 3.42%.The company had revenue of C$112.67 million for the quarter.

Here are the key takeaways from Altus Group’s conference call:

• Positive Sentiment: Altus reported Q2 revenue growth of 6% and Adjusted EBITDA growth of 34%, with margins expanding 540 basis points and Adjusted EPS rising 36%. Excluding the divested One11 business from the prior-year comparison, revenue and recurring revenue growth were approximately 7%.
• Positive Sentiment: Management raised full-year organic constant-currency revenue growth guidance to 5.25%-7.25% and increased its Adjusted EBITDA margin-expansion outlook by 60 basis points to 510-610 basis points, implying approximately CAD 127 million-CAD 131 million of Adjusted EBITDA.
• Positive Sentiment: Portfolio simplification is complete after four divestitures, while restructuring initiatives are expected to generate approximately CAD 15 million in annualized savings. Altus has returned about CAD 450 million to shareholders year-to-date, reducing its share count by roughly 20%, and expects further capital returns in the second half.
• Positive Sentiment: Software momentum remained strong, led by double-digit ARGUS Intelligence growth, 10.4% software ARR growth, 106.9% net revenue retention, and ARGUS gross retention above 95%. Cross-selling increased threefold year-over-year, and management cited improving sales execution and more million-dollar deals.
• Neutral Sentiment: Altus acquired U.K.-based Valos.ai, a profitable but financially small AI-enabled platform connecting property valuers and lenders. Management views it as a strategic tuck-in that expands access to lenders, adds valuation-focused data and AI capabilities, and could support cross-selling into Canada and other core markets, but it is not material to current financial guidance.

Altus Group Price Performance

AIF stock opened at C$45.57 on Friday. The company has a debt-to-equity ratio of 52.00, a current ratio of 0.71 and a quick ratio of 1.30. The firm has a market capitalization of C$1.63 billion, a P/E ratio of -2,278.50, a P/E/G ratio of 0.96 and a beta of 0.29. Altus Group has a 52-week low of C$36.97 and a 52-week high of C$63.07. The company’s 50 day simple moving average is C$45.58 and its 200-day simple moving average is C$45.52.

Altus Group Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 15th were issued a dividend of $0.15 per share. The ex-dividend date was Tuesday, June 30th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 1.3%. Altus Group’s payout ratio is currently -3,000.00%.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on AIF shares. BMO Capital Markets raised their target price on Altus Group from C$48.00 to C$54.00 in a research note on Thursday, April 16th. National Bank Financial dropped their price target on shares of Altus Group from C$52.00 to C$45.00 and set a “sector perform” rating on the stock in a research report on Wednesday, May 27th. Finally, ATB Cormark Capital Markets upped their price target on shares of Altus Group from C$54.00 to C$58.00 and gave the company an “outperform” rating in a report on Friday, April 17th. Three analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of C$55.62.

Insider Transactions at Altus Group

In other Altus Group news, Director William Brennan bought 2,000 shares of Altus Group stock in a transaction dated Thursday, May 28th. The stock was bought at an average price of C$42.90 per share, for a total transaction of C$85,800.00. Following the completion of the acquisition, the director directly owned 3,529,831 shares of the company’s stock, valued at approximately C$151,429,749.90. This trade represents a 0.06% increase in their ownership of the stock. Over the last 90 days, insiders have acquired 190,392 shares of company stock worth $8,052,187. 4.05% of the stock is owned by insiders.

About Altus Group

Altus Group Ltd operates in the Canadian real estate sector. Its services can be summed up as advisory services, software and data solutions to the property and real estate industry. The company has three reportable segments namely Altus Analytics, Commercial Real Estate Consulting, and Geomatics. It generates maximum revenue from the Commercial Real Estate Consulting segment. A part of its revenue is also derived from the United States, Europe, and the Asia Pacific.