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Enbridge Inc. releases its first-quarter earnings Thursday morning, but can it top Wednesday’s news? The heavily indebted pipeline operator said it will sell a U.S. gas pipelines business and part of its renewable energy portfolio for more than $3 billion, making progress in shoring up its balance sheet.

If Enbridge shares can’t beat their 2 per cent gain Wednesday there are a host of other major Canadian names competing for investors’ attention Thursday morning, with Canadian Tire Corp. Ltd., Brookfield Asset Management Inc. and Telus Corp. on the agenda. A half-dozen other S&P/TSX Composite companies are also scheduled to release.

Canadian Tire is expected to continue reporting good news, with high customer traffic and e-commerce sales. Analysts expect, on average, EPS of $1.38 on just under $2.81 billion in revenue, according to Thomson Reuters Eikon. The company has beaten expectations in eight straight quarters, and typically has a bump in its share price in the mid-to-high single digits in the seven days after earnings.

Brookfield’s complex structure and extensive portfolio of investments can make earnings lumpy, and the company often diverges from consensus. It’s also not a stock that typically reacts hugely to its earnings report — but after a healthy beat in its fourth-quarter numbers, the shares gained 5.8 per cent in the following seven days, according to Eikon. Analysts expect EPS of 16 US cents on US$5.58 billion.

Meanwhile, Telus Corp. has missed more often than hit in the last eight quarters, producing six instances of underperforming the consensus. Analysts expect EPS of 75 cents on just over $3.36 billion in revenue. Telus appears set to benefit from easing promotional activity and the rollout of its fiber-to-the-home network in the first quarter, analysts say. A dividend hike looks likely, with estimates ranging from 4 per cent to 10 per cent, while free cash flow after dividends is expected to turn positive.

For Enbridge, analysts expect the company to report earnings per share of 66 cents on revenue of just under $12.78 billion. The December-quarter report was Enbridge’s first beat after six consecutive misses, with last two reaching double-digit percentages.

In addition to the formal deal announcements, Reuters reported early Wednesday afternoon that Enbridge has received higher-than-expected initial bids of as much as $4.5 billion for its Canadian midstream assets, naming Keyera Corp. Pembina Pipeline Corp. and Husky Energy Inc. as bidders. Enbridge’s CEO later told Reuters the company had not received “formal” bids for the assets.

Thursday’s before-market reports also include Finning International Inc., MEG Energy Corp., Stantec Inc., Stars Group Inc., TransAlta Renewables Inc., and Trican Well Service Ltd.

Magna International Inc. is expected to post a profit Thursday, but some are forecasting an earnings miss on weaker demand from North America. The company’s conference call is scheduled for after the market closes Thursday.

Wednesday evening, Open Text Corp. missed big, posting 54 US cents of EPS when I/B/E/S consensus was 62 US cents. Revenue of US$685.9 million was under consensus of US$689.9 million. It was the biggest EPS miss of the past eight quarters; the company had only missed three times in that period. Still, the Waterloo-based cloud computing company announced a 15 per cent increase in its dividend.

Franco-Nevada beat revenue expectations, posting US$173.1 million in sales versus Thomson Reuters I/B/E/S consensus of US$169.9 million, and handily topped EPS consensus of 28 US cents by posting EPS of 34 US cents. The company said it would increase its quarterly dividend from 23 US cents to 24 US cents per share.

Northland Power Inc. blew through revenue and earnings expectations, posting $486.4 million in sales versus the I/B/E/S estimate of $401.8 million and 61 cents of EPS versus the 49 cent consensus. The company maintained its 2018 annual guidance for EBITDA and free cash flow, however.

Pan American Silver Corp. posted EPS of 20 US cents, beating the average expectation of 17 US cents, but revenue of US$207 million missed consensus of just over US$218 million.

First Capital Realty Inc. reported funds from operations of just under 30 cents, coming in line with expectations of 30 cents, per I/B/E/S.

Great Canadian Gaming Corp., New Flyer Industries Inc. and TMX Group Ltd. were also expected to report Wednesday evening.

Note: The earnings-per-share numbers expected by analysts and reported by the companies are typically adjusted for items they consider special, unusual or non-recurring. The EPS figures in this story may not match the companies’ net income per share as calculated by generally accepted accounting principles.

With files from Reuters and Bloomberg

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 17/05/24 4:00pm EDT.

SymbolName% changeLast
Enbridge Inc
Enbridge Inc
Brookfield Asset Management Ltd
Brookfield Asset Management Ltd
Pembina Pipeline Corp
PPL Corp
Pembina Pipeline Cor
Northland Power Inc
Trican Well
Finning Intl
Mega Uranium Ltd
Magna International Inc
Magna International
Mistras Group Inc
Keyera Corp
Open Text Cp
Meg Energy Corp
Stantec Inc

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