Quarterhill Inc. (NASDAQ:QTRH) Up On Q3 Earnings Expectations

Quarterhill Inc. (NASDAQ:QTRH)

Quarterhill Inc. (NASDAQ:QTRH) jumped 20.5% after providing an update on financial results ending September 30, 2017. The investment holding company says it expects revenues of between $72.5 million to $82.5 million driven by strong results from its patent licensing subsidiary Wi-LAN Inc.

Wi-LAN subsidiary has already entered into a comprehensive licensing agreement with Samsung Electronics. The agreement builds upon patent rights previously granted to the South Korean company. However, the terms of the agreement remain confidential.

QTRH Stock Investor Reaction

Quarterhill Inc. (NASDAQ:QTRH)

Investors reacted to the positive outlook by pushing the stock to $1.59 – close to a key resistance level. The stock is currently trading at levels last seen in January after dropping from April highs of $2.20 a share.

The company also announced it expects adjusted EBITDA to come in between $50 and $56 million. Quarterhill Inc. (NASDAQ:QTRH) will release Q3 financial results on November 9, 2017.

“As we have said in the past, financial results in this segment of our business can be variable from quarter-to-quarter and this is a prime example of the upside potential of this variability. Our expected results for Q3 will provide a significant boost to our cash position, which will assist in the continued growth of Quarterhill,” said CEO Shaun McEwan.

$4.23 Million Contract

Separately, the Oklahoma Department of Transportation has awarded a wholly owned subsidiary of Quarterhill Inc. (NASDAQ:QTRH), International Road Dynamics, a contract worth $4.23 million. Under the terms of the agreement, the subsidiary is to provide installation, repair service, and calibration for Traffic Monitoring Systems across the state.

International Road Dynamics is to be responsible for all equipment, materials labor, and technical expertise. The company is also to install and maintain a Weigh in Motion and AVC systems. All Systems in the state are solar powered and accessible via cellular mode.

The $4.23 million contract builds on a CDN$1.95 million contract that International Road Dynamics was awarded for the supply of Commercial Vehicle Pre-Screening Stations for the Saskatchewan Bypass project. The systems are to be used for screening and monitoring of commercial vehicles based on weight and dimension.

Under the terms of the agreement, the Quarterhill Inc. (NASDAQ:QTRH) subsidiary is to supply and install an integrated system using its Bending Plate Weigh-In-Motion Scales with License Plate Readers.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.