A roundup of some of the North American equities making moves in both directions today
On the rise
Aurora Cannabis Inc. (ACB-T) was up 3.8 per cent in afternoon trading on Thursday in the wake of the premarket release of a corporate update on its global operations, business units, and portfolio of strategic investments.
The Edmonton-based company said construction of its Whistler Pemberton facility remains on track for completion in the fourth quarter. It said 11 additional rooms are expected to come on-line beginning in November 2019. Upon completion, Pemberton is expected to produce more than 4,500 kilograms per year of certified premium organic cannabis.
PepsiCo Inc. (PEP-Q) was 3.8 per cent higher after it beat quarterly revenue estimates, as ramped up advertising boosted demand for the company’s sodas and snacks. Net revenue rose 4.3 per cent to US$17.19-billion in the third quarter ended Sept. 7, beating analysts’ estimates of US$16.93-billion, according to IBES data from Refinitiv.
Shares of Halliburton Co. (HAL-N) were up 1.4 per cent as an equity analyst TD Securities suggests it could rethink its the future of its Canadian pressure pumping business due to its focus on returns versus market share in North America.
“We believe that Halliburton is evaluating several scenarios for its Canadian pressure pumping business including the idling of all assets or exiting the Canadian market altogether,” said Aaron MacNeil in a research note.
Shares of Canadian bitcoin miner Hut 8 Corp. (HUT-X) rose 1.9 per cent after it said it will be the first cryptocurrency-focused company listed on the Toronto Stock Exchange thanks to a new initiative launched by the exchange.
The TSX Sandbox program announced in April allows for some exemptions to listing requirements so that more novel or exceptional companies may gain access to the exchange.
Miner Iamgold Corp. (IMG-T) rose 0.2 per cent despite partially halted work at its Rosebel gold mine in Suriname after an influx of illegal miners blockaded operations, local media reported.
The Toronto-listed company has stopped work and removed equipment and personnel from the mine’s southern pits, news site Starnieuws said.
This is the second shutdown to hit the mine since August, when operations were suspended after an illegal miner was killed during a clash with police.
On the decline
“Conditions in the Access Equipment, Agriculture and Automotive markets have continued to soften since the expectations cited on the Linamar Q2 Earnings call that was held on August 8, 2019,” the company said.
The autoparts maker warned that a strike at General Motors in the U.S. was taking a bite out of its bottom line.
The Ontario-based company says a strike-related decline in GM orders is affecting Linamar’s earnings by up to $1 million a day.
The strike by the United Auto Workers at GM began on Sept. 16.
Total deliveries came in at a record 97,000 units for the quarter. However, markets had been looking for a number closer to 97,477 vehicles, according to IBES data from Refinitiv. Tesla has a target to deliver between 360,000 and 400,000 vehicles this year. Some analysts are now suggesting hitting that target is in doubt.
In a research note, Canaccord Genuity analyst Jed Dorsheimer said: "We view these results as a strong indicator that the “demand cliff” associated with reduction in Q2 Federal Tax credits in the US was not rooted in the data. Instead we see this as a datapoint in favor of latent EV demand compared to ICE sales.
“Importantly, the company cited record net orders generated during the quarter that exceeded deliveries resulting in an increase to the backlog at the end of the quarter.”
Shares of Constellation Brands Inc. (STZ-N), which invested $5-billion in Canadian cannabis producer Canopy Growth Corp. last year, were lower by 5.4 per cent after the company posted a net loss in the second quarter, despite beating Wall Street estimates for profit on the back of strong summer demand for Corona and Modelo beers.
The company said it took a US$839-million write down in the value of its investment in pot firm Canopy Growth during the quarter.
The brewer raised its adjusted profit forecast, excluding the costs related to its investment in Canopy, to US$9 to US$9.20 range from the previous range of US$8.65 to US$8.95, but cut its fiscal 2020 earnings per share on a reported basis to 55 US cent to 75 US cent range from US$4.95 to US$5.25.
With files from Jeffrey Jones, Terry Weber and wires