UPDATE 1-Transcontinental Q2 profit tops on new contracts

* Q2 adj EPS C$0.49 vs est C$0.44

* Q2 rev rises 1 pct to C$514.7 mln, but misses est

* Shares rise 5 pct (Follows alerts)

June 8 (Reuters) - Transcontinental Inc (TCLa.TO), Canada's biggest commercial printer, posted a second-quarter profit that topped market estimates, helped by new contracts, sending its shares up about 5 percent

The company also raised its annual dividend by 23 percent to 54 Canadian cents a share.

For the February-April period, net income applicable to participating shares fell to C$33 million ($33.9 million), or 41 Canadian cents a share, from C$67 million, or 83 Canadian cents a share, a year ago.

In the year-ago quarter, the company had a gain from discontinued operations in the United States, the Quebec, Montreal-based company said in a statement.

Adjusted earnings rose to 49 Canadian cents a share, compared with analysts' average estimate of 44 Canadian cents a share, according to Thomson Reuters I/B/E/S.

Revenue rose marginally to C$514.7 million, but missed analysts' estimates of C$523 million.

Shares of Transcontinental, which started printing Canada's leading daily The Globe and Mail since October last year in a contract worth C$1.7 billion, were up 5 percent at C$14.76 in late morning trade on Wednesday on the Toronto Stock Exchange. ($1 = 0.974 Canadian Dollars) (Reporting by Gowri Jayakumar in Bangalore; Editing by Gopakumar Warrier)