Kalkine Media - Summary
- Rising inflationary levels and the current increase in job gains reported by Statistics Canada have added fuel to rate hike expectations in the coming week.
- Enerflex, a manufacturer of natural gas transportation equipment, reported a record revenue of CA$825 million in the first fiscal quarter of 2023.
- Trican and Linamar (TSX:LNR) reported YTD gains of 1.96% and 12.41% as per their closing price on Monday.
Rate hike expectations have led to slower property sales across the country as buyers anticipate increased borrowing costs in near future. Meanwhile, the banking sector could potentially perform relatively well as interest rates are on the increase.
ALSO READ: What to expect as the Central Bank leans towards another rate hike in July
As the market poises for an interest rate hike, investors may turn to sectors that have shown stable financial performance. The following producer manufacturing companies have reported year-on-year gains in their quarterly results for the March 2023 quarter.
Find out more about these stocks here:
Enerflex Ltd. (TSX: EFX)
For Q1 FY23, Enerflex reported a record revenue of CA$825 million, as against CA$323 million in the first quarter of 2022. The adjusted EBITDA was CA$122.8 million in March 2023 quarter, compared to CA$34.9 million in March 2022 quarter.
Image source: ©2023 Kalkine®; Data source: Company Reports
Meanwhile, Enerflex’s net earnings for the March 2023 quarter stood at CA$13.5 million. This marked an upswing from its net loss of CA$0.4 million in March 2022 quarter.
EFX closed at CA$9.57 on Monday, July 10, 2023. The stock has YTD gains of 12.46% as on July 10, 2023.
Trican Well Services Ltd. (TSX: TCW)
For the March 2023 quarter, Trican reported a revenue of CA$297 million, which marked a 36% increase over its revenue of CA$218.9 million for the March 2022 quarter. The adjusted EBITDA for the quarter was CA$82.9 million, compared to CA$42 million for the March 2022 quarter.
Image source: ©2023 Kalkine®; Data source: Company Reports
The stock closed at CA$3.65 on Monday, after reporting YTD gains of 1.96% as on July 10, 2023.
Linamar Corporation (TSX: LNR)
The company reported a year-on-year increase of 28.9% in sales during March 2023 quarter to CA$2.29 billion. Meanwhile, the net earnings for the quarter were reported to be CA$ 117 million, as against CA$ 96.3 million for the previous corresponding period.
Image source: ©2023 Kalkine®; Data source: Company Reports
The stock closed at CA$ 70.03 on July 11, 2023, on Monday, July 10, 2023. The YTD gain on the stock was 12.41% as per Monday’s closing price.