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TSX The Week's Wrap: Biggest Bay Street Earnings and News in Canadian Stocks

Stock Markets Aug 06, 2022 15:13
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By Ketki Saxena -- On Friday, the S&P/TSX composite Index closed the day at 19,620.13 points, up 0.2% in the day’s trading and posting its third straight day of modest gains. However, the Canadian index closed the week at a loss, down 0.4% for the week, and underperforming the S&P 500, which closed the week 0.4% higher.

The commodity heavy Canadian index was heavily pressured this week by a sharp decline in crude prices, which closed the week at their lowest levels since February, prior to the Ukrainian invasion.

Further losses on the Canadian index were capped by upbeat earnings in a busy week on Bay Street. Here’s a recap of TSX Earnings this past week, including the good, the bad, and the uncertain.

TSX Earnings Recap

Suncor Energy (TSX:SU): the behemoth Canadian oil producer posted an over fourfold jump in its second-quarter profit on Thursday, as it benefited from a rally in commodity prices, and floated plans to divest assets and slim down its portfolio. The company also announced it had reached a deal to sell its Norway assets for $410 million.

Enerplus (TSX:ERF): the Calgary-based oil and gas producer that’s seeking to sell its Canadian assets, announced its quarterly dividend is going up 16% and reported sharply lower net debt during the second quarter and a surge in cash flow. Enerplus also announced it’s now planning to return 60% of free cash flow to shareholders (from 50%) and increased its 2022 production forecast.

TC Energy (TSX:TRP) Corp: The Canadian pipeline operator and Mexican state utility Comision Federal de Electricidad on Thursday agreed to develop a $4.5 billion pipeline, suspending international arbitration proceedings as they formalized a strategic alliance. To help fund its part of the tab, TC Energy announced it’s raising $1.8 billion in a bought-deal sale of 28.4 million common shares

Canadian Natural Resources (TSX:CNQ): The energy company reported a quarterly profit that more than doubled, as crude prices soared on tighter energy supplies due to the Ukraine conflict. The company also announced it will pay a special dividend of $1.50 per share later this month.

Air Canada: The Canadian carrier posted a smaller quarterly loss and forecast higher full-year expenses, amidst a rise in labor costs and jet fuel prices. However the company is still struggling with supply and demand fundamentals. While advance ticket sales in the second quarter were at 94% of 2019 levels, capacity remains at just 73% of 2019 levels as the carrier struggles to ramp up capacity in the aftermath of the Covid-19 pandemic.

Bombardier (TSX:BBDb): the plane manufacturer reported a smaller second-quarter loss, helped by steady demand from wealthy travelers and lower interest expenses, with its loss per share narrowing sharply to $0.48 per share, from a loss of $1.49 per share a year earlier. Investors also reacted positively to the news that Bombardier now expects 2022 free cash flow of more than $515 million, compared with its earlier forecast of over $50 million, in part due to an increase in working capital.

Sun Life Financial (TSX:SLF) Inc: Canada's second-biggest life insurer comfortably beat analysts' estimates for second-quarter core profit, which rose slightly from a year earlier as higher earnings in Canada helped offset a decline in profits from its wealth management unit as global stock market worries weighed on its equities-focused MFS Investment Management business.

Canopy Growth Corp (TSX:WEED): the cannabis company posted a $2 billion quarterly loss, with the majority of losses stemming from a $1.7-billion goodwill writedown on Canopy’s cannabis operations, a non-cash charge management attributed to a decrease in the company’s stock market value in the first quarter.

Maple Leaf Foods: the company missed analyst expectations with gross profit declining sharply and sales in its plant based protein division fell 15%,. President and CEO Michael McCain also warned that the company has been “unable to hire adequate people resources to operate our supply chains, experienced unnatural agricultural and trading markets, and realized hyper-inflation that has been challenging to keep up with pricing.”

Bell Canada: Reported profit slipped in the second quarter even as revenue grew. The company attributed the decrease to higher expenses related to derivatives it uses for hedging, higher depreciation and amortization expenses and higher severance and acquisition costs.

Other Big News on bay Street

TD (TSX:TD): The Canadian bank announced a planned acquisition of New York-based boutique investment bank and brokerage Cowen in a $1.3 all cash billion deal, designed to boost the Canadian big bank’s presence in the high-growth U.S market. The companies expect the deal to close in the first quarter of 2023..

Dye & Durham: UK’s competition regulator ordered the Canadian cloud-based software firm to sell UK-based TM Group following an investigation that identified competition concerns. In an emailed statement to Reuters, TM Group said it “respects the decision made and will continue to fully cooperate with the CMA as we work with both them and Dye & Durham to identify a long-term investor.”

For Upcoming TSX Earnings in the Next Week, View our Earnings Calendar.

TSX The Week's Wrap: Biggest Bay Street Earnings and News in Canadian Stocks

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