A roundup of some of the North American equities making moves in both directions today
On the rise
In a research note, Raymond James analyst Andrew Bradford said: "We believe this to be a highly attractive level at which to be starting or building positions, though investors need to be mindful that declining EBITDA creates a tactical headwind.
“EFX stock is down materially over the last 90-days. The market is effectively pricing a near-50-per-cent drop in run-rate EBITDA. But recurring and rental revenues are growing, which is adding an element of stability to historically volatile margins. In addition, core fabricating margins seem more robust across the board than what can just be chalked-up to high-margin projects in its backlog. All told, we think a 15-per-cent to 20-per-cent decline in EBITDA is more likely than the 50-per-cent decline the market is pricing."
A day after its share price jumped almost 16 per cent with its quarterly earnings release, prompting several equity analysts to upgrade its stock, Stantec Inc. (STN-T) rose 4.7 per cent following the announcement of a renewal of its Normal Course Issuer Bid (NCIB) and a renewal of its automatic share purchase plan
Under the NCIB, Stantec may purchase up to 5,559,313 common shares, representing approximately 5 per cent of the 111,186,279 issued and outstanding common shares as of Oct. 31.
AutoCanada Inc. (ACQ-T) sat 20.8 per cent higher after it reported third-quarter revenues of $981.9-million, an increase of 13.3 per cent from $866.9-million the prior year and ahead of expectations of $921.2-million.
The company reported a net loss of $4.1-million or 15 cents per share versus a loss of $15-million or 56 cents a year ago. Adjusted EBITDA doubled to $32.5-million from $16.2-million, the company said.
Walt Disney Co.’s (DIS-N) popular theme parks and a remake of The Lion King pushed earnings past Wall Street targets on Thursday, and the company spent less than it had projected on its big plunge into streaming entertainment.
Shares of Disney rose 3.8 per cent in Friday trading.
Excluding certain items, Disney earned US$1.07 a share for the quarter, above average analyst estimates of 95 US cents per share, according to IBES data from Refinitiv.
The company said it expects several of its growth projects to be operational in 2019, including the $700-million Gray Oak pipeline - the biggest of three new pipelines connecting the U.S. Permian basin to the Texas Gulf Coast.
Canada’s oil producers are desperate for new export pipelines as rising production and tight capacity on existing pipelines and rail have led to the Alberta government curtailing output.
“Execution of our $19 billion secured growth capital program remains on track. This includes our US$0.7 billion investment in the Gray Oak pipeline, stretching from the Permian and Eagle Ford to the Texas Gulf Coast,” the company said.
The Montreal-based manufacturer announced revenue of US$685.7-million, up from US$670.4-million a year ago. Analysts were expecting revenue of US$658.9-million.
Its net loss was US$4.3-million or 13 cents US per share, compared to net income of US$9.6-million 29 cents US per share last year. Adjusted net income was US$2.4-million or 7 cents US per share, compared to US$11-million or 34 cents US per share a year ago.
Magna, which makes parts such as body structures, chassis and powertrain for customers including Ford Motor and Volkswagen, cut its 2019 sales outlook to between US$38.7 billion and US$39.8 billion, from its previous range of US$38.9 billion to US$41.1 billion, largely due to the strike at GM.
Power Financial Corp. (PWF-T) was up 1.1 per cent following a Thursday after-market announcement that earnings were up in the third quarter on higher retirement service sales in the U.S. and an increase in group customer sales in Canada.
The Montreal-based management and holding company says it had a net income of $584 million, or 88 cents per share, up from $523 million or 74 cents per share last year.
The company, focused on the financial services sector, says adjusted net earnings were 89 cents per share, up from 81 cents per share last year.
Analysts had expected earnings of 84 cents per share, according to financial markets data firm Refinitiv.
On the decline
Second Cup Ltd. (SCU-T) fell 2.9 per cent after it announced Friday that it is changing its parent company’s name to Aegis Brands Inc. as it seeks a fresh start and hopes to make acquisitions to bolster its café business.
Canadian Imperial Bank of Commerce (CM-T) finished flat after it said on Friday it had agreed to sell a significant portion of its majority stake in CIBC FirstCaribbean to GNB Financial Group for $797-million.
Following the deal, CIBC will have a 24.9-per-cent stake in FirstCaribbean, the company said in a statement.
Net income of $5.8-million or 7 cents per share compared to a net loss of $1.4-million or 2 cents last year. Adjusted EBITDA of $8.1-million compared to $13.1-million a year ago. Analysts were expecting earnings of 5 cents and revenue of $91.4-million, according to S&P Capital IQ.
Gap Inc. (GPS-N) fell 7.6 per cent after saying Chief Executive Art Peck would leave the company, a surprise exit in the middle of a restructuring that comes as the apparel retailer slashed its full-year earnings forecast.
The surprise departure of Mr Peck and persistent declining sales have thrown the apparel retailer’s planned spin-off of its Old Navy brand into question.
Mr. Peck, who joined the company in 2005 and has held the top job since 2015, planned to split Old Navy into a separate public company as he strove to revitalize Gap with the addition of Athleta athleisure wear, provide more online offerings and close unprofitable stores.
With files from Brenda Bouw, staff and wires