A roundup of some of the North American equities making moves in both directions today
On the rise
The Saskatoon-based company reported adjusted earnings per share and EBITA of $1.58 and $1.865-billion, up 7 per cent and 16 per cent year-over-year and topping the consensus projection on the Street of $1.56 and $1.832-billion.
In a research note, Raymond James analyst Steve Hansen said: “Nutrien’s 2Q19 results offer a brilliant proof point regarding the platform’s embedded resilience, in our view. Indeed, despite facing one of the worst U.S. springs on record (unprecedented wet weather/ flooding, acreage loss), NTR still managed to grow consolidated Adj. EBITDA by up 16 per cent year-over-year. While consolidated results admittedly benefited from healthy NPK price grains, we’re still impressed by Retail’s resilience where EBITDA slipped only 6 per cent year-over-year — largely thanks to recent acquisitions and cost control.”
“With demand for grain/oilseeds still growing, and crop prices sharply higher on account of lower projected inventories, management expects 2020 (input) demand to rebound strongly,” he said. “At the same time, management highlights that: 1) NA farmers are expected to maximize yields where planting was successful, supporting 2H19 input demand (note: easy comps will also help); and 2) South American growers are also expected to support 2H19/1H20 input demand by bolstering soybean/corn acreage. That said, global potash shipments have still been reduced to 65-67 million mts (vs. 67-69 million prior) on account of: 1) recent weather delays, with only a portion of demand expected to be recouped in 2H19; and 2) a potential pullback in 2H Chinese (record imports YTD, new policy direction) and Indian (below normal monsoon) demand/imports.”
Shares in Merck & Co Inc. (MRK-N) rose 1 per cent after the drugmaker posted a higher-than-expected quarterly profit and raised its full-year earnings forecast on Tuesday, powered by strong demand for its vaccines and cancer immunotherapy Keytruda.
Excluding items, Merck earned US$1.30 per share, exceeding the expectation on the Street of US $1.16 per share.
Excluding items, the company earned US$1.10 per share, beating the average analyst estimate of US$1.05.
The Montreal-based company’s adjusted net income jumped 86 per cent to $240 million, or 88 cents per share, in the quarter ended June 30.
Analysts on average had estimated a profit of 76 cents per share.
On the decline
The Toronto-based commercial real estate company reported earnings of $1.10 per share, missing the consensus estimate of $1.17. Revenues of $745.52 -million also narrowly fell short of the expectation on the Street.
“Colliers delivered solid internal revenue growth and overall operating performance during the second quarter. Based on our results to date, current business pipelines and acquisitions during the year, we remain optimistic about our growth prospects for the balance of the year,” said chairman and CEO Jay Hennick. “During the second quarter, we completed two more acquisitions of former Colliers affiliates in Charlotte, North Carolina and Sweden. With our investment-grade balance sheet, disciplined growth strategy and more diversification than ever, we are well positioned to continue creating value for shareholders in the future.”
CannTrust Holdings Inc. (TRST-T) lost 0.7 per cent after the Globe and Mail reported its former chair – along with a company director – sold $6-million of the company’s stock in the weeks after he was informed in writing that the cannabis producer was illegally growing marijuana plants in unlicensed rooms.
First Quantum Minerals Ltd. (FM-T) was down 0.9 per cent in the wake of releasing second-quarter results after the bell on Monday that largely fell in line with expectations.
The miner reported adjusted earnings per share of 13 cents, matching the Street’s projection, while adjusted EBITDA of $361-million fell just short of the consensus estimate ($381-million).
RBC Dominion Securities analyst Sam Crittenden said: “We expect a neutral reaction to Q2 results which were in line and the ramp up of Cobre Panama continues to progress well. Commercial production is now expected in Q3 vs. Q4 previously; however, total project capex is now expected to be up by 6 per cent to $6.7-billion from $6.3-billion. Cobre Panama produced 30.8Kt of copper in Q2 (25Kt RBC estimate) and production guidance for the year was reiterated. FM also announced that it had reached a settlement with the Zambian Revenue Authority with respect to the assessment claim on duties for an immaterial amount, inline with previously disclosed expectations.”
Capital One Financial Corp. (COF-N) dropped 5.9 per cent after revealing a hacker gained access to personal information from more than 100 million Capital One credit applications, including six million from Canada, as U.S. federal authorities arrested a suspect in the case.
Beyond Meat Inc. (BYND-Q) plummeted 12.1 per cent on plans for another stock offering just three months after its IPO, even as demand for its plant-based burgers and sausages prompted an increase in its full-year sales forecast.
With files from Brenda Bouw and wires