A roundup of some of the North American equities making moves in both directions today
On the rise
The Vancouver-based company said adjusted profit for the quarter fell 24.6 per cent to $568-million, or 99 cents per share. Revenue rose about 0.5 per cent to $3.11-billion.
Analysts on the Street were expecting the company to earn 95 cents per share and revenue of $3.00-billion.
“Demand for our products remains strong, commodity prices continue to be solid and we were pleased to regain investment grade credit ratings, which confirms our strong financial position,” said president and chief executive officer Don Lindsay in a release. “Our previously issued guidance for the year remains unchanged and our main focus for the remainder of the year is the development of our QB2 copper project.”
BRP Inc. (DOO-T) increased 3.5 per cent after announcing president, chief executive officer and director Jose Boisjoli will be appointed Chairman of the Board, succeeding Laurent Beaudoin.
Mr. Beaudoin, will become named Chairman Emeritus and will not stand for re-election.
“It has been an honour for me to serve as BRP’s Chairman of the Board for the past 16 years, but the time has come to step down from active duty while remaining a mentor and advisor to the management team”, said Mr. Beaudoin in a statement. “As BRP’s President and CEO as well as Chairman, Jose’s tremendous knowledge of the powersports industry and his insights about the company will greatly benefit the Board. I have no doubt that Jose, with the support of the entire team, will pursue BRP’s journey by continuing to deliver strong results and evolve the company for the future.”
“We are taking a more proactive approach to reducing abuse and its effects on Twitter,” said CEO Jack Dorsey in a release. “We are reducing the burden on victims and, where possible, taking action before abuse is reported. For example, we are now removing 2.5x more Tweets that share personal information and 38 per cent of abusive Tweets that are taken down every week are being proactively detected by machine learning models. We’re also continuing our work to make Twitter more conversational via the launch of our public prototype app (twttr), with the end goal of making conversation on Twitter feel faster, more fluid, and more fun.”
Monetizable daily active users rose to 134 million in the first quarter, up 12 per cent from a year ago,
For the first quarter of 2019, Twitter’s revenue rose 18 per cent from a year ago to US$787-million, topping Wall Street expectations of US$776.1-million.
However, the company’s guidance for the current quarter fell short of the Street’s expectations. Revenue of between US$770-million and US$830-million missed the consensus projection of US$819.5-million.
Lockheed Martin Corp. (LMT-N) was up 5.6 per cent after its reporting a better-than-expected quarterly profit and a raise to its annual profit forecast.
Pointing to strong demand for its missiles and fighter jets, the Maryland-based company said its earnings rose to US$1.70-billion, or US$5.99 per share, in the first quarter, from US$1.16-billion, or US$4.02 per share, from the same period a year ago.
Excluding a US$75-million gain from tax deductions on foreign military sales, Lockheed reported US$5.73 per share profit, easily topping the Street’s US$4.34 forecast.
“The corporation had strong performance in the first quarter which has allowed us to increase our full year financial guidance for sales, profit, earnings per share and cash,” said Lockheed Martin chairman, president and CEO Marillyn Hewson in a release. “Our differentiated portfolio and record backlog position us well for continued growth, and we remain focused on delivering innovative technologies and solutions for our customers, and long-term value creation for stockholders.”
"We're encouraged by our first quarter results as our disciplined growth strategies continue to deliver strong underlying performance," said CEO James Quincey in a statement. "We remain confident in our full year guidance as we continue to make progress on our transformation as a consumer-centric total beverage company."
Revenue rose 5 per cent to US$8.02-billion, and the company earned 48 US cents per share on an adjusted basis. Analysts had expected US$7.88-billion and 46 US cents per share, respectively.
On the decline
Harley-Davidson Inc. (HOG-N) dipped 1.9 per cent after reporting better-than-anticipated quarterly results as U.S. president Donald Trump vowed to act on “unfair" European Union tariffs on the manufacturer.
“Harley Davidson has struggled with Tariffs with the EU, currently paying 31%. They’ve had to move production overseas to try and offset some of that Tariff that they’ve been hit with which will rise to 66% in June of 2021.” @MariaBartiromo So unfair to U.S. We will Reciprocate!— Donald J. Trump (@realDonaldTrump) April 23, 2019
Power Corp. of Canada (POW-T) and Power Financial Corp. (PWF-T) fell 2.3 per cent and 3.8 per cent , respectively, after an equity analyst at TD Securities downgraded his rating for their stocks, pointing to valuation concerns and a “lack” of catalysts.
Procter & Gamble Co. (PG-N) dipped 2.7 per cent despite beating the Street on its quarterly revenue and profit, as investors focused in on lower-than-anticipated EBIT margin and organic sales decline in its grooming business.
Net income attributable to the company rose to US$2.75-billion, or US$1.04 per share, in the quarter. Excluding items, the company earned $1.06 per share, beating the consensus projection of of US$1.03 per share.
Net sales rose 1.1 per cent to US$16.46-billion, beating analysts’ average estimate of US$16.37-billion.
“We delivered another quarter of strong organic sales growth, enabling us to further increase our outlook for the year,” said chairman, president and CEO David Taylor in a release. “Cash generation also remains strong, supporting an increase in our cash productivity target and extending our long track record of dividend increases. Our focus on superiority, productivity and improving P&G’s organization and culture is delivering improved results despite a challenging competitive and macroeconomic environment.”
Hive Blockchain Technologies Ltd. (HIVE-X) dropped 24 per cent after it announced that its largest shareholder, Genesis Mining, which holds 26.3 per cent of its outstanding shares, has requisitioned a meeting of shareholders to propose changing the board. Hive said Genesis wants to add some of its senior officers and employees.
Hive said its board has appointed an independent special committee to deal with the move “and related contractual disputes between Genesis and Hive which gave rise to the requisition.”
“Discussions with Genesis for full disclosure of all costs for all mining operations have been ongoing since September 2018,” said Frank Holmes, Interim Executive Chairman and Interim CEO. “We are frustrated that Genesis unilaterally gave notice of increased costs in Sweden and services under the MSA have not been ‘performed in a professional and workmanlike manner in accordance with the highest industry standards’ as required by the MSA. It is disappointing that Genesis has reacted by attempting to eliminate the dispute by taking control of the HIVE board but I am confident that HIVE shareholders will understand that the meeting requisition is a blatant attempt to take control of HIVE for Genesis’ sole benefit to the detriment of all other shareholders”.
With files from staff and wires