Despite a few possible bright spots, brace yourselves for a week of bad numbers. They will start rolling in today and continue through till Friday, when Statistics Canada lifts the curtain on the unemployment figures for the month of April.
In March, the national unemployment rate hit 7.8%, the highest it has been since October 2010 as more than 1 million Canadians lost their jobs as the COVID-19 crisis took hold. The April numbers are expected to be even worse. Much worse.
According to reports, as of April 28, Service Canada received applications for the Canada Emergency Response Benefit from 7.3 million Canadians. By the end of April, the federal government has issued benefits totalling $25.6 billion, with StatsCan reporting that one in five businesses have laid off more than 80% of their staff.
Air Canada Reports Earnings Monday
With earnings season in full swing, a number of notable Canadian companies will be reporting this week.
Air Canada (TSX:AC) will be first up on Monday as it reveals its first quarter figures. Back in February, the biggest issue facing the largest Canadian airline was the impact of the grounding of its fleet of Boeing (NYSE:BA) 737 Max jets.
All that changed as air travel around the globe all but stopped in March. On March 20, Air Canada announced it was laying off 5,150 flight attendants. Then, it put 600 of its 4,400 pilots on unpaid leave. By March 30, the carrier said it would lay off another 16,500 employees. Then, on April 8, media reports said Air Canada would rehire 16,000 workers after the federal government outlined an aid package to help employers that would cover 75% of wages.
Expect the earnings report to show just how deep the COVID-19 has cut into Air Canada’s numbers across the board.
George Weston Reports Tuesday
George Weston Limited (TSX:WN) will be reporting its first-quarter results before the opening bell on Tuesday. The food retailer and property manager includes Loblaw, Choice Properties Real Estate Investment Trust and Weston Food.
The reporting period will cover the first three months of 2020, which means only the first weeks of the coronavirus crisis will be included in the report, a period that saw a surge in grocery store purchases as Canadians in all provinces found themselves under stay-at-home orders.
Shopify Reports on Wednesday
Shopify Inc (TSX:SHOP) reports its first-quarter earnings on Wednesday, which could provide a small bright mid-week break from all the gloom-and-doom numbers. The Ottawa-based company is experience growing demand of late as businesses across North America are relying more heavily on e-commerce solutions during the COVID-19 crisis.
Shopify is a technology company that offers sellers to use their shopping cart tech to sell, ship and manage products. It has also started making interest-free cash advances to small companies that use its e-commerce products since the beginning of the pandemic. The move has helped cash-strapped retailers by providing some wiggle room as they navigate the sudden shift in people’s shopping habits.
BCE Unveils Latest Figures on Thursday
Media giant BCE Inc. (TSX:BCE) is another big Canadian company reporting this week. It will release its results of first-quarter activity on Thursday before the opening bell. The earnings will cover the three-month period that ended March 30.
The company, which operates three major subsidiaries – Bell Canada, Bell Mobility and Bell Media, which owns the CTV television network as well as radio stations across the county.
Bell Canada last month reported it was laying off 800 employees due to the COVID-19 crisis.
Canadian Oil Companies Reporting
Several Canadian oil companies will also be reporting on Thursday, including Enbridge (TSX:ENB), Pembina Pipeline (TSX:PPL) and Canadian Natural Resources Ltd (TSX:CNQ).
With plunging oil prices due to a dramatic drop in demand during the global COVID-19 economic shutdown and the dispute over output limits between major oil-producing nations, the numbers are expected to reflect a bleak picture of the oil industry crisis.
Last week, other Canadian oil producers, including Husky Energy (TSX:HSE), Imperial Oil (TSX:IMO) and Cenovus Energy (TSX:CVE), offered their latest earnings reports. The numbers all revealed the staggering effects of the deepening crisis in the oil sector. More of the same is expected this week.