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Snap Inc. shares are expected to take a hit on Wednesday after the social-media company reported disappointing third-quarter results.
The company reported a loss of 14 cents (U.S.) per share and revenues of $207.9-million, compared with expectations of a loss of 15 cents and $237-million, respectively. Its daily active user growth rate also slowed compared with the previous two quarters.
The stock was down by more than 15 per cent in after-hours trading on Tuesday. Snap shares have fallen by about 12 per cent since the company went public at $17 in March, based on Tuesday's close of $15.12 in New York.
Shares of Canadian auto parts maker Linamar Corp. could also drop on Wednesday after it reported net earnings of $1.62 (Canadian) per share in the third quarter, which was below consensus expectations of $1.75 and down from $1.86 last year.
Avigilon Corp. shares were halted shortly before markets closed on Tuesday and could be active on Wednesday after the video-security company reported record quarterly revenue $108.2-million (U.S.) for the period ending Sept. 30, which narrowly beat expectations of $107.9-million and compared with $95.8-million the year before.
Expect movement in Agrium Inc. shares as well on Wednesday; the fertilizer giant was scheduled to release its latest quarterly results late Tuesday evening. Analysts expected revenue of $2.4-billion, up from $2.2-billion a year earlier, and a loss of 6 cents per share versus a loss of 29 cents a year earlier. Agrium announced on Tuesday that China's Ministry of Commerce approved its proposed "merger of equals transaction," with Potash Corporation of Saskatchewan Inc. The companies have now received clearance for the merger in Brazil, Canada, China, India and Russia and are awaiting approval in the U.S. The deal, announced more than a year ago, is expected to close by the end of the fourth quarter.
Investors are also watching to see whether Equifax Inc. will report its earnings on Wednesday, which would be its first quarterly report since it unveiled a massive security breach in September. The stock is down about 25 per cent since then. Equifax is expected to report earnings of $1.49 per share in the third quarter, versus $1.44 a year earlier. The company has yet to announce a date for its third-quarter earnings and, according to Reuters, has until Nov. 9 to release its results or seek an extension from the U.S. Securities and Exchange Commission.
Other earnings expected to be released before markets open on Wednesday include Encana Corp. and CGI Inc. Encana is expected to report operating earnings of 6 cents per share (Canadian) compared with 4 cents a year earlier. The stock closed lower on Tuesday, dropping 12 cents to $16.31 after setting a new 100-day high amid strengthening oil prices. The stock is up about 20 per cent over the past year.
Montreal-based CGI, Canada's largest publicly traded IT services business, is expected to report fourth-quarter earnings of 93 cents per share versus 89 cents a year ago.
Manulife Financial Corp is scheduled to report after markets close on Wednesday. Analysts are expecting the insurance giant to report earnings of 55 cents per share for the third quarter, similar to last year. Kinross Gold Corp. will also report after the bell on Wednesday. The expectation is for adjusted earnings of 2 cents a share, down from 10 cents a year ago.