A roundup of some of the North American equities making moves in both directions today
On the rise
Canadian Imperial Bank of Commerce (CM-T) was up 2.1 per cent on Thursday after it reported a 2-per-cent rise in quarterly profit and raised its dividend before the bell, continuing a period of slower earnings growth for Canada’s fifth-largest bank.
CIBC reported profit of $1.4-billion, or $3.06 per share, compared with $1.37-billion, or $3.01 per share a year ago.
Shares of U.S. retailer Nordstrom Inc. (JWN-N) jumped over 15 per cent after it reported a better-than-expected quarterly profit on Wednesday after market close, pointing to cost reductions and clearing of inventory.
Citi analyst Paul Lejuez said: “The quarter was weak on an absolute basis (though perhaps not as bad as what the market expected), with sales down 5 per cent and GP$ down 6 per cent. But the company uncharacteristically reduced expenses (expense dollars were down 4 per cent, though helped somewhat by an incentive accrual adjustment) leading to a big beat on the bottom line. While the earnings quality wasn’t good, pulling back on spending is something that JWN hasn’t been great at in the past, so in some ways it is good to see the reduction. Looking more broadly, JWN is in a difficult spot struggling to drive traffic to its bricks and mortar stores. We estimate full line store-level comps were down double digits in 2Q despite being in the best malls. We believe the company will continue to have difficulty driving profits higher.”
Dick’s Sporting Goods Inc. (DKS-N) increased 3.6 per cent in the wake of the premarket release of better-than-anticipated second-quarter results. The U.S. retailer reported sales and earnings per share of US$2.26-billion and US$1.26 on same-store sales growth of 3.2 per cent, exceeding the Street’s expectations of US$2.21-billion and US$1.21.
The company also raised its full-year guidance to US$3.30 to US$3.45. from a range of US$3.20 to US$3.40.
“Our strong comp sales performance was driven by increases in both average ticket and transactions and represented our strongest quarterly comp since 2016. We saw growth across each of our three primary categories of hardlines, apparel and footwear, our brick-and-mortar stores comped positively and our eCommerce channel remained strong, increasing 21 per cent,” said chairman and CEO Edward Stack.
Shares of Tesla Inc. (TSLA-Q) rose 0.6 per cent after Volkswagen CEO Herbert Diess said he wants to take a stake in the electric vehiclemaker to access its s software and batteries technology, German business publication Manager Magazin reported on Thursday.
“Diess would go in right away if he could,” the magazine quoted an unidentified top Volkswagen manager as saying.
Acquiring a stake would be enough for the German carmaker to access Tesla’s technological expertise, the report said.
On the decline
Chicago-based Cresco Labs Inc. (CL-C) was down 0.9 per cent after it reported second-quarter revenue of $29.9-million, up 253 per cent year-over-year. and ahead of expectations of $27.9-million. Its net loss of $3.9-million, compared to net income of $1.6-million in the prior-year period.
Canaccord Genuity analyst Derek Dley said: "In our view, Cresco’s results outperformed our expectations heading into the quarter, with the company reporting a healthy improvement in profitability as it begins to scale its revenue base. While Q2/19 results represented a healthy increase in revenue both YoY and sequentially, the majority of revenue was generated in only two states, Illinois and Pennsylvania. As the company increases its exposure into 9 additional states and incorporates the acquisitions of Origin House and VidaCann, we expect revenue growth to accelerate in the near term.
“While much of the focus for investors as of late has centered on the DOJ review of large acquisition announcements within the space (including Origin House for Cresco), we believe investors should not overlook the healthy improvement in profitability delivered by Cresco in Q2/19. The company’s ability to generate positive EBITDA while it is still in expansion mode gives us confidence in Cresco’s medium- to long-term EBITDA and free cash flow generation potential.”
With files from staff and wires