A roundup of some of the North American equities making moves in both directions today
Thomson Reuters Corp. (TRI-T) shares touched a record high on Tuesday after reporting a 9-per-cent rise in quarterly revenue. The news and information provider reported fourth-quarter revenue of $1.52-billion, compared with $1.41-billion a year ago. That was just short of the average analysts forecast of $1.54-billion.
Chief executive officer Jim Smith said the company is looking at numerous potential acquisition targets, and has begun talks with several.
“There are opportunities out there but I think market valuations are challenging for everyone,” said Mr. Smith. “We have to make certain we find not only the right strategic fit but the fit that makes financial sense as well. It’s a pretty frothy M&A market at the moment.”
The stock was last up 3.6 per cent.
Shares of Bank of Montreal (BMO-T) rose 1.9 per cent after it announced a year-over-year increase in first-quarter profit, driven largely by a strong performance from its U.S. division.
“BMO’s good performance this quarter reflects the benefits of our diversified and attractive business mix which continues to deliver sustainable growth, with adjusted earnings per share up 10 per cent from last year. Our North American P&C banking businesses performed very well, particularly across our U.S. platform and in commercial banking, reflecting strong performance against solid economic fundamentals in Canada and the United States and a credit environment that remains strong and stable, while our market-sensitive businesses were impacted by the challenging revenue environment earlier in the quarter,” said BMO CEO Darryl White in a statement.
A pair of Canadian marijuana producers rose in afternoon trading after announcing new deals.
Aphria Inc. (APHA-T) increased 5.1 per cent following the news of a worldwide license agreement with Massachusetts-based Manna Molecular Science LLC to produce and sell patches containing cannabis oils for its established suite of medical and adult-use brands.
"As we continue to expand its use from product to ingredient, we are excited to offer innovative new ways for consumers to interact with cannabis," said Aphria president Jakob Ripshtein. "As a company at the forefront of cannabis innovation, Manna Molecular Science will be an important strategic partner for Aphria. Like us, they are committed to making safe, high-quality cannabis products available to a wide array of global consumers."
Aurora Cannabis Inc. (ACB-T) rose 4.9 per cent in the wake of its acquisition of a 51-per-cent ownership interest in Portugal’s Gaia Pharm Lda. to establish a local facility to produce medical cannabis and derivative products. “We are very pleased to be entering yet another European market, and look forward to collaborating with our joint venture partners, the government of Portugal and the Portuguese medical community, to encourage the development of a rigorously regulated and safe medical cannabis system that is well supplied and accessible to patients," said Aurora president Terry Booth in a release.
Fertilizer maker Nutrien Ltd. (NTR-T) was up 0.1 per cent after revealing it is in talks with Australian rural services firm Ruralco. “Nutrien confirms that its Landmark business is engaged in discussions with Ruralco regarding a potential transaction,” said the company in a statement.
“No decision has been made as to whether to proceed with the transaction, no agreement has been reached, and there can be no assurance that any transaction will result from these discussions. Any potential transaction would be subject to the parties negotiating and entering into a definitive agreement and satisfying its conditions.
On the decline
Shares of Bank of Nova Scotia (BNS-T) were down 3.1 per cent after its first-quarter profit fell 4 per cent year-over-year. Before market open, the bank reported profit of $2.25-billion, or $1.71 per share, compared with $2.34-billion, or $1.86 per share a year ago.
“While significant market volatility impacted some of our business lines, we still experienced strong growth. In addition, credit quality remains strong and in line with recent quarters."‚” said Brian Porter, Scotiabank’s chief executive officer, in a statement.
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Husky Energy Inc. (HSE-T) fell 6.9 per cent after announcing 2019 production may fall lower than previously anticipated due largely to mandatory output cuts brought on by Alberta’s provincial government. The company is now projecting 290,000-305,000 barrels of oil equivalent per day (boe/d), falling from a previous expectation of 300,000 boe/d. “It was a challenging quarter," said chief executive officer Rob Peabody in a statement. "The oil spill on the East Coast was particularly disappointing, and we are continuing to work closely with the regulator to determine the root cause and apply learnings.
"We also saw a significant decline in Brent and WTI oil prices and extreme volatility in the WTI-WCS spread. Husky's fourth quarter earnings, adjusted for FIFO impacts, continues to show the value of the Integrated Corridor business and the strong contribution of our Asia Pacific business."
The announcement came alongside the release of fourth-quarter results that largely fell short of expectations.
In a research note, Raymond James analyst Chris Cox said: “This was a noisy quarter for the company. While the inventory-related issues that impacted the I&M segment should be transitory - and should reverse in 1Q19- we did not observe similar impacts with other integrated producers this earnings season, which may cause some angst with investors that currently own Husky for its more defensive characteristics. Furthermore, the capex slippage with West White Rose will likely cause some further angst, especially given the company's recent operational performance. Ultimately, we believe these issues will prove to be one-time/transitory in nature, but suspect the shares could see some near-term weakness as the market digests this new.”
Barrick Gold Corp. (ABX-T) was down 0.6 per cent a day after launching a hostile US$17.8-billion takeover bid for Newmont Mining Corp. (NEM-N).
Newmont sat 3 per cent lower.
Meanwhile, Goldcorp Inc. (G-T) fell 2.5 per cent after an equity analyst at RBC Dominion Securities downgraded its stock amid concerns about the uncertainty surrounding Newmont’s US$10-billion friendly offer to acquire it.
Though it reported year-over-year rises in both sales and profit, George Weston Ltd. (WN-T) sat 3.1 per cent lower. The company revealed adjusted earnings per share of $1.59 for the fourth-quarter, falling from $1.76 during the same period a year ago due to an increased number of shares. The Street expected $1.57.
"Having successfully completed the spin-out of Choice Properties, George Weston has transformed into a more balanced and diversified company, with three strong and well-positioned pillars in retail, food and real estate,” said chairman and chief executive officer Galen Weston in a statement.
"Loblaw delivered strong operational performance again this quarter and is accelerating its investments in growth as its strategy continues to gain momentum. Choice Properties delivered solid financial and operational results and the integration of CREIT and Choice Properties continues to progress well. At Weston Foods, fourth quarter results came in as expected, as the business began to stabilize."
Shares of Tesla Inc. (TSLA-Q) dipped 0.4 per cent lower after the U.S. Securities and Exchange Commission said that chairman Elon Musk violated the terms of a settlement last year of fraud charges against him. In a filing on Monday, the SEC said that in a tweet on Feb. 19 Musk had broken a promise made last year to have his public statements vetted by the company’s board, part of the deal. On Tuesday, Mr. Musk fought back on Twitter, saying:
Caterpillar Inc. (CAT-N) plummeted 2.1 per cent after an equity analyst at UBS downgraded its stock by two levels with the expectation of further downward earnings revisions. “We believe 55 per cent of CAT’s end markets will peak in 2019, pressuring revenue and margins in 2020 as demand declines,” said Steven Fisher.
Home Depot Inc. (HD-N) was 1.9 per cent lower after its fourth-quarter financial results fell short of expectations.
“A material slowdown in the housing market – where both sales and prices have been under pressure for some time – has stymied demand for home improvement products,” wrote Neil Saunders, managing director of GlobalData Retail told Reuters. “In our view, this has likely affected the momentum of growth at Home Depot.”
With files from staff and wires