A roundup of some of the North American equities making moves in both directions today
On the rise
Stelco Holdings Inc. (STLC-T) soared in the wake of the release of better-than-anticipated third-quarter financial results.
After the bell on Wednesday, it reported revenue of $1.354-billlion, up 471 per cent year-over-year and ahead of the Street’s expectation by 13 per cent ($1.203-million). Adjusted EBITDA of $787-million more than doubled the result of the previous quarter, which was a record-breaking result, and also topped the consensus ($693.4-million).
Calling it “a quarter for the history books,” National Bank Financial analyst Maxim Sytchev said: “With the U.S. infra bill in play, don’t sell steel stocks just yet. Yes, we had removal of some barriers between Europe and the U.S, on steel but the recently passed infrastructure bill is a much bigger net positive. Don’t forget the revived fortunes of the oil & gas industry, hopefully recovering auto production volumes in 2022E (how can they be any lower?), only marginal capacity additions (looks like 4-5 per cent of the industry in the U.S.) and sustained scrap pricing which keeps a floor on HRC. We (and the market) are already aware that peak HRC pricing will come down; however, what we question is the speed of that deflation. It feels to us that higher for longer = higher STLC price in the meantime.”
Leon’s Furniture Ltd. (LNF-T) rose after saying it earned a record $63.8-million in its latest quarter, up from $49.1-million a year earlier, as revenue also set a record high.
The furniture retailer that includes the Leon’s and Brick banners says the profit amounted to 81 cents per diluted share for the quarter ended Sept. 30 compared with a profit of 60 cents per diluted share a year ago.
The growth came as total system-wide sales rose to $825.5-million from $762.8-million, while revenue totalled $683.2-million, up from $630.8-million in the same quarter last year. Same-store sales in the quarter were up 9.7 per cent compared with a year ago.
Leon’s CEO Mike Walsh says the quarter saw the best top line results in the company’s history, as well as record profitability.
On an adjusted basis, Leon’s says it earned 77 cents per diluted share in its most recent quarter compared with an adjusted profit of 61 cents per diluted share a year ago.
Analysts on average had expected an adjusted profit of 73 cents per share, according to financial markets data firm Refinitiv.
Mining company Kinross Gold Corp. (K-T) was higher despite reporting weaker results in its latest quarter as gold production and sales fell by nearly 20 per cent from the prior year following a fire at its Tasiast mill in West Africa in June.
The Toronto-based company says its net loss attributable to shareholders was US$44.9-million or four cents per diluted share in the third quarter.
That compared with a net profit of US$240.7-million or 19 US cents per share a year earlier.
Kinross says adjusted profits dropped to US$90.2-million or 7 US cents per share, from US$310.2-million or 25 US cents per share in the third quarter of 2020.
Revenues for the three months ended Sept. 30 fell 23.8 per cent to US$862.5-million from US$1.13-billion in the prior year quarter.
Kinross was expected to report 5 US cents per share in adjusted profits on US$933.2 million in revenues, according to financial data firm Refinitiv.
On the decline
Retailer Canadian Tire Corp Ltd. (CTC.A-T) dropped after it missed market expectations for quarterly profit and revenue on Thursday.
As pandemic-related restrictions eased, Canadians have redirected their attention back to outdoor activities, away from the home-related items they splurged on last summer while they took up new hobbies and revamped their living spaces.
While shoppers returned to the 99-year-old retailer’s SportChek and Mark’s stores, its online business, which had thrived during the lockdowns, took a beating.
E-commerce sales in Canadian Tire’s retail segment fell 2.2 per cent in the third quarter.
Similar to other retailers, Canadian Tire has been spending more to stock up its shelves ahead of the crucial holiday shopping season, as it grapples with increased commodity inflation and rising freight costs.
Chief Executive Greg Hicks said the company was well-positioned to meet the holiday demand, citing its strong inventory.
The company also raised its annual dividend by 10.6 per cent to $5.20 per share, and resumed its share repurchase plan with a view to buying back up to $400-million Class A shares by the end of 2022.
The Toronto-based retailer’s revenue fell 1.8 per cent to $3.91-billion in the quarter ended Oct. 2, missing analysts’ estimate of $3.97-billion, according to Refinitiv IBES.
Excluding items, Canadian Tire earned $4.20 per share, falling short of estimates of a $4.30 profit.
Brookfield Asset Management Inc. (BAM.A-T) was down on Thursday after reporting its third-quarter more than quadrupled compared with a year ago, boosted by continued growth and investment performance across its business.
The alternative asset manager says it earned a profit attributable to shareholders of US$797-million or 47 US cents per diluted share for the quarter ended Sept. 30.
The result compared with a profit of US$172-million or 10 US cents per diluted share in the same quarter last year.
Revenue totalled US$19.25-billion, up from US$16.25-billion a year ago.
Funds from operations totalled US$1.41-billion or 85 US cents per share in the quarter, up from US$1.04-billion or 65 US cents per share in the same quarter last year.
Distributable earnings rose to US$1.24-billion compared with US$890-million a year ago.
Concurrently, a subsidiary of Brookfield Asset Management Inc. will purchase US$400-million in the aggregate of either redeemable partnership units of Brookfield Infrastructure L.P. and/or exchangeable shares at the exchangeable share offering price.
Aviation training specialist CAE Inc. (CAE-T) fell after it reported lower-than-expected quarterly revenue and profit on Thursday as deliveries of the company’s flight simulators to airlines fell.
CAE said deliveries of full-flight simulators fell to 5 units in the second quarter from 10 units a year earlier. It has joint training ventures with airlines and aviation companies such as Emirates and Bombardier.
Saint-Laurent, Que.-based CAE posted a net income of $14-million, or 4 cents per share, in the quarter ended Sept. 30, compared with a year-ago loss of $5.2-million, or 2 cents per share.
Excluding items, CAE reported a profit of 17 cents per share, missing average analysts’ expectations of 20 Canadian cents per share, according to Refinitiv data.
Revenue rose 15.6 per cent to $814.9-million. Analysts on average had expected revenue of $899.68-million.
Cineplex Inc. (CGX-T) erased early gains after it reported a loss of $33.6-million in its latest quarter as movie audiences grew with all of its theatres open again.
The movie theatre company says the loss amounted to 53 cents per diluted share for the quarter ended Sept. 30 compared with a loss of $121.2-million or $1.91 per diluted share a year ago.
Revenue totalled $250.4-million, up from $61.0-million in the same quarter last year, while theatre attendance rose to 8.3 million compared with 1.6 million a year ago.
Cineplex says it reopened its entire circuit of theatres as of July 17.
Box office revenue was $94.1-million in the quarter, up from $14.5-million in the same quarter last year, while food service revenue totalled nearly $80-million, up from $15.5-million.
Cineplex reported $14.1-million in media revenue, up from $12.8-million, and $53.3-million in amusement revenue, up from $13.2-million. Other revenues amounted to $8.9-million, up from nearly $5-million a year ago.
Power Corp. (POW-T) dipped in the wake of beating expectations as its net profit attributable to shareholders surged nearly 47 per cent to $741-million in its latest quarter.
The Montreal-based holding company says it earned $1.09 per diluted share in the third quarter, up from 75 cents per share a year earlier when net income was $505-million.
Excluding restructuring and other one-time items, adjusted profit for the three months ended Sept. 30 reached $748-million or $1.10 per share, compared with $483-million or 72 cents per share in the third quarter of 2020.
Power was expected to report 96 cents per share in adjusted profits, according to financial data firm Refinitiv.
Power holds full control of Power Financial and with that majority stakes in Great-West Lifeco, IGM Financial and Wealthsimple Financial Corp., as well as a minority stake in Pargesa Holding.
Cascades Inc. (CAS-T) was lower with it reporting a third-quarter profit of $32-million, down $49-million a year ago, as its sales edged higher.
The packaging, tissue and paper company says the profit amounted to 32 cents per share for the quarter ended Sept. 30, down from 50 cents per diluted share a year ago.
Sales totalled $1.03-billion, up from $1.01-billion in the same quarter last year.
On an adjusted basis, Cascades says it lost a penny per share in its most recent quarter compared with an adjusted profit of 50 cents per share a year earlier.
Cascades chief executive Mario Plourde says the company continued to see inflationary pressures on input costs, notably raw materials, but also in labour, transportation and energy, across its operations in the third quarter.
The cost increases, he says, were partially offset by price increases and cost management initiatives.
Chorus Aviation Inc. (CHR-T) was lower despite saying it is riding a fledgling recovery in the airline business driven by the return of domestic traffic in Canada and abroad.
The company, which leases planes across the globe and provides regional service for Air Canada, says its fleet saw far greater use on both those fronts last quarter, with a further uptick on the near horizon.
Chief executive Joe Randell says its Jazz Aviation subsidiary carried more than doubled the number of passengers on its Air Canada routes in the third quarter than it did in the first half of the year.
He expects flying activity to reach about 75 to 80 per cent of pre-pandemic levels in the fourth quarter.
Chorus reported Wednesday a net loss of $14.1-million in the quarter ended Sept. 30 or eight cents per share compared with a profit of $20.5-million or 13 cents per in the same period last year.
Operating revenue hit $274.4-million in the quarter compared with $196.6-million a year earlier.
Adjusted net income rose to $15.3-million or nine cents per share, up from $10.9-million or seven cents per share from the third quarter of 2020.
With files from staff and wires.