Linamar Corp. posted double-digit gains in quarterly revenue and operating profit after markets closed Tuesday, but what typically counts is what’s expected — and with earnings per share of $2.37, the company fell below consensus of $2.45, according to Thomson Reuters Eikon.
That miss of 3.3 per cent is just Linamar’s second in the past eight quarters — but larger competitor Magna International Inc., which reported earlier this earnings season, was able to post a neat beat, surpassing expectations by 8.2 per cent, one of the higher levels of outperformance in a string of seven beats or in-line reports in the past eight quarters.
Linamar’s first-quarter revenue came in at $1.894-billion, just a hair above the $1.887-billion analysts expected on average.
Investors taking a walk along the Boardwalk REIT also found a difficult path Tuesday evening. The company reported adjusted funds from operations of 36 cents per unit, versus consensus of 53 cents, per Eikon. The REIT reaffirmed its current-year guidance, however, possibly blunting investor unease when markets open Wednesday.
Tuesday marked the deadline for investment firms to file reports of holdings of U.S. publicly traded companies, and few are as anticipated as the one from Warren Buffett’s Berkshire Hathaway, which dropped after markets closed. The report revealed Buffett’s company has more than doubled its investment in generic drugmaker Teva Pharmaceutical Industries Ltd. and confirmed it has become Apple Inc.’s second-largest shareholder. Teva was up slightly in after-market U.S. trading.
CannTrust Holdings said after markets closed that it had arranged $75 million in financing where investors bought units for $9 that get them one common share and one-half of a warrant to purchase stock in the future for $12. The smart money seems to have anticipated the news that it was selling shares at below-market prices, as the shares dropped from $10 to $9.66 in Tuesday’s trading. There’s a promise of more declines Wednesday, depending on investor sentiment of the terms.
Wednesday morning, department store operator Macy’s Inc. is scheduled to report first-quarter results. The company is expected to post its second consecutive rise in quarterly revenue, benefiting from a number of strategies it has put forth to combat falling store traffic. Macy’s has been focusing for several years on expanding its loyalty program and growing Macy’s Backstage, its off-price brand. Analysts, who have been cautious of the retailer’s comparable store sales growth, will be looking for more signs of a sales turnaround.
With files from Reuters
David Milstead