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The outlook for miners heading into first-quarter earnings season was underwhelming, but Barrick Gold Corp. avoided adding further to investors’ disappointment.

The world’s largest gold miner by output said it posted a 5 percent rise in first-quarter adjusted profit on Monday, primarily reflecting higher gold prices and lower depreciation. Its 15 cents (U.S.) in adjusted earnings per share topped average analyst expectations of 13 cents (U.S.), and the shares traded up mildly in after-hours trading on the New York Stock Exchange.

Analysts had been cutting estimates in the month leading up to Monday’s report, with an average EPS revision of negative 16.6 per cent. A year ago, Barrick missed EPS consensus by 30 per cent.

The news may also assist Goldcorp and Agnico Eagle Mines, which report later in the week, but the next miner on deck is Teck Resources Ltd., which has been riding strong prices for coal.

Teck, which reports Tuesday morning, is expected to report, on average, EPS of $1.27 (U.S.) on revenue of just under $3.2 billion (U.S.). But analyst Oscar Cabrera of CIBC World Markets expects Teck to come in below consensus, and he warns “An EPS result miss is likely to have a negative impact on TECK shares in the current volatile commodity price environment, in our opinion.” Nonetheless, he has an “outperform” rating and $46 12-18 month price target, versus Monday’s close of $33.20. He says that the price investors are placing on Teck gives shareholders the company’s zinc and copper-mining businesses for free.

Canadian National Railway Ltd., meanwhile, joined Canadian Pacific Railway Ltd. Monday afternoon in disappointing investors. CN reported a 16.2 percent drop in first-quarter profit on Monday, hurt by higher operating expenses. Revenue, which dropped for the first time in four quarters, was down at $3.19 billion compared with $3.21 billion a year earlier.

While the EPS number of $1 beat analyst consensus, the company said it now expects 2018 adjusted earnings of $5.10 to $5.25, compared with its earlier estimate of between $5.25 and $5.40.

Operating expenses rose 9 percent to $2.16 billion in the quarter as the railroad operator spent more to move more volumes in a harsh winter. Operating ratio, an industry cost metric, rose to 67.8 percent from 61.8 percent. (A lower ratio indicates higher efficiency.)

This is the first earnings report under interim Chief Executive Officer Jean-Jacques Ruest, after Luc Jobin exited last month.

PrairieSky Royalty Ltd. reported revenue Monday afternoon of $67.9 million, below consensus of just under $78.8 million, according to Thomson Reuters Eikon. Funds from operations came in at 22 cents per share.

The biggest name in the U.S. reporting after Monday’s market close was Alphabet Inc., parent of Google. While many feel the big, high-flying American names are poised for a fall, Alphabet did nothing to support the thesis.

Worldwide sales increased to $31.1 billion (U.S.), above the average analysts’ estimate of $30.3 billion (U.S.), according to Thomson Reuters I/B/E/S. The company posted, quarterly profit of $9.4 billion (U.S.), or $13.33 (U.S.) per share, but about $3.40 (U.S.) of the EPS was attributable to a new accounting method for unrealized gains in Alphabet’s investments in startups. Excluding the investment-related gains and other items, adjusted earnings were $9.93 (U.S.) per share, topping the $9.28 (U.S.) per share consensus.

Tuesday’s before-market action includes a host of major U.S. names as well as two major players in Canada’s consumer sector.

Tim Horton’s parent Restaurant Brands International traded down Monday in advance of earnings as BMO Nesbitt Burns Inc. analyst Peter Sklar downgraded the shares to “market perform” from “outperform.” Mr. Sklar says his firm’s survey of consumer perception of Tim Horton’s suggests the drumbeat of negative news may impact sales at the donut chain. Tim’s provides an outsized amount of profits at Restaurant Brands, which also owns Burger King and the Popeye’s chicken chain.

Analysts expect, on average, EPS of 56 cents (U.S.) on revenue of just under $1.13 billion (U.S.).

Grocer Metro Inc. reports Tuesday, with analysts expecting, on average, 47 cents of EPS on $2.9 billion in revenue. The company is fresh off a 14 per cent EPS surprise for its December quarter, but Canada’s grocery sector has seen shares trade closer to 52-week lows than highs on headwinds like rising labor costs, generic drug-pricing reforms, and consumer unhappiness with a bread price-fixing scheme revealed by the Competition Bureau.

The U.S. earnings calendar for Tuesday morning is littered with big names.

Caterpillar shares gained Monday in advance of the heavy-equipment maker’s Tuesday report. Citigroup upgraded the stock to a “buy” Monday, saying it expects analysts to boost earnings estimates as the company increases returns and benefits from an improved Chinese economy.

Analysts expect, on average, $2.11 (U.S.) in EPS on just over $12 billion (U.S.) in revenue. Caterpillar hasn’t missed expectations since the first quarter of 2016, and its smallest EPS beat in the past five periods was nearly 18 per cent.

A number of Canadian equipment companies rise and fall on the same spending trends that drive Caterpillar’s fortunes, and could move in tandem with CAT Tuesday. Toromont Industries Ltd. reports Wednesday, while Finning International Inc. is scheduled to release first-quarter numbers May 10. Ritchie Bros. Auctioneers Inc., which resells equipment, should also report in May.

Coca-Cola Co. has beaten average analyst estimates for revenue and EPS in seven of last eight quarters, according to Reuters. For the first quarter, on average, analysts estimate 46 cents (U.S.) of EPS on $7.34 billion (U.S.) in revenue. Investors will look closely at Coca-Cola’s organic sales, where KO has outperformed peers, as well as early results from its revamp of Diet Coke, writes Renaissance Macro Research analyst April Scee.

3M Co. shares were weak Monday leading into the industrial concern’s earnings report, falling for the fourth day in a row. They’re now down 8.6 per cent year to date versus 0.3 per cent decline in the S&P 500. The average first-quarter EPS estimate is $2.50 (U.S.), with a revenue expectation of $8.23 billion (U.S.), according to Thomson Reuters data.

The roster of big U.S. names Tuesday morning also includes Eli Lilly and Co.; Lockheed Martin Corp.; and United Technologies Corp.

With files from Reuters

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 28/03/24 0:02pm EDT.

SymbolName% changeLast
CNR-T
Canadian National Railway Co.
+0.26%179.1
CNI-N
Canadian National Railway
+0.64%132.49
CM-T
Canadian Imperial Bank of Commerce
+0.93%68.53
TECK-N
Teck Resources Ltd
+4.39%45.85
CM-N
Canadian Imperial Bank of Commerce
+1.02%50.58
C-N
Citigroup Inc
+0.49%63.06
MRU-T
Metro Inc
-0.56%72.72
FTT-T
Finning Intl
-1.12%39.63
AEM-N
Agnico-Eagle Mines Ltd
+2.32%59.19
AEM-T
Agnico Eagle Mines Ltd
+2.13%80.16
GOOG-Q
Alphabet Cl C
-0.13%151.74
GOOGL-Q
Alphabet Cl A
-0.27%150.47
MMM-N
3M Company
+0.98%105.62
LMT-N
Lockheed Martin Corp
-0.43%454.81
TIH-T
Toromont Ind
+0.25%129.95
CP-T
Canadian Pacific Kansas City Ltd
-0.34%119.67
CP-N
Canadian Pacific Kansas City Ltd
-0.06%88.41
ABX-T
Barrick Gold Corp
+1.82%22.39
TRI-T
Thomson Reuters Corp
-0.75%210.08
TRI-N
Thomson Reuters Corp
-0.42%155.29
PSK-T
Prairiesky Royalty Ltd
+1.46%26.39
KO-N
Coca-Cola Company
+0.1%61.09
LLY-N
Eli Lilly and Company
+1.19%787.42

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