Q: Does this past Canadian legend have light at the big turn around tunnel? What would you look for in terms of good signs before buying? What is their core business software targeting now and are there any Ai ties? Thanks
5i Research Answer:
It does look like things are turning around a bit here fundamentally. Earnings are inflecting higher, expected to grow from $0.02 in the prior year to $0.12 this year. Revenues, while getting back to growth still remain less exciting in terms of growth rates. The QNX business is starting to show some promise and the company has been beating earnings estimates by a wide margin recently. The core business is now the QNX software that is focused on automotive with some interesting potential in robotics as well. One could probably try to make some AI connections but we don't think most would really view it as an 'AI name'.