A roundup of some of the North American equities making moves in both directions today
On the rise
Air Canada (AC-T) jumped 4.9 per cent on Monday after reporting an unexpected quarterly adjusted profit before the bell
Benefiting from higher passenger traffic and its purchase of the Aeroplan loyalty program, the airline announced a 9.4-per cent rise in total operating revenue to $4.45-billion, beating the Street’s expectation of $4.39-billion.
Air Canada said traffic rose 4.2 per cent while passenger revenue per available seat mile, a key revenue measure for airlines, increased 4.5 per cent in the first quarter.
“The grounding of the Boeing 737 MAX aircraft following Transport Canada’s and other regulators’ decisions resulted in the unexpected removal of 24 aircraft from our fleet during the last 18 days of the quarter, with the associated cost and revenue impact," said president and CEO Calin Rovinescu in a release. “Our team immediately executed on several significant mitigation measures, including entering into new leases and extensions, contracting other airlines to cover some flights and consolidating flights and frequencies, thereby protecting approximately 98 per cent of our flying from the date of the grounding to April 30 . The agility of our business model, the flexibility of our fleet and our team’s “can-do” culture was on full display as we adjusted to these unexpected circumstances. This is further evidence of the changed culture at Air Canada, with its emphasis on nimble decision-making and a focus on customer care.”
Shares of Bausch Health Companies Inc. (BHC-T) rose 9.2 per cent after it raised its full-year guidance on Monday.
The Laval, Que-based company, formerly known as Valeant Pharmaceuticals International Inc., now expects full-year revenue in a range between $8.35-billion and $8.55-billion, up from its earlier guidance for between $8.30-billion and $8.50-billion.
It is projecting adjusted earnings before interest, taxes, depreciation and amortization (EBITDA of between $3.40-billion and $3.55-billion, up from $3.35-billion and $3.50-billion.
“Bausch Health is off to a strong start in 2019 with the continued growth of XIFAXAN® which grew 11 per cent in the quarter, the launch of BRYHALI, the successful acquisition of TRULANCE, and the approval of DUOBRII and expected launch in June. We believe that our promising pipeline and focus on Project CORE (cost optimization and revenue enhancements) has positioned the Company to build on our growth in 2019 and beyond. Strong operational execution is leading us to raise our full-year 2019 revenue and adjusted EBITDA (non-GAAP) guidance,” said chairman and CEO Joseph Papa in a release.
Anadarko Petroleum Corp. (APC-N) rose 3.8 per cent after Occidental Petroleum Corp. (OXY-N) increased the cash component of its US$38-billion bid on Sunday, removing a requirement for any deal to receive the approval of Occidental’s shareholders.
Occidental submitted a new US$76 per share offer to Anadarko structured as 78 per cent cash and 22 per cent stock, as opposed to an even cash/stock split in its US$76 per share offer previously.
On Monday, Occidental said its latest bid was designed to make sure Anadarko’s board considers its offer superior to one from Chevron Corp. (CVX-N).
Shares of Occidental sat 1.4 per cent higher.
Westshore Terminals Investment Corp. (WTE-T) rose 0.9 per cent in the wake of reporting better-than-anticipated first-quarter financial results after the bell on Friday.
The company reported first-quarter revenue of $88.8-million up from $83.9-million a year earlier. Profit was $22.9-million or 41 cents per share versus $26-million or 32 cents a year earlier.
Analysts were expecting revenue of $84.2-million and a profit of 37 cents in the latest quarter.
Hudson’s Bay Co. (HBC-T) was up 2.4 per cent after it announced before market open it is “pursuing strategic alternatives for the Lord + Taylor operating business, including a possible sale or merger, as part of its strategy to focus on its greatest opportunities.”
“Over the last year, we’ve taken bold actions and made fundamental fixes that have resulted in a far stronger, more capable HBC, having returned to positive operating cash flow, increased profitability and strengthened the balance sheet,” said CEO Helena Foulkes."
Kraft Heinz Co. (KHC-Q) rose 0.6 per cent after it announced a plan to restate its financial reports for over a two-year period to account for errors that resulted from lapses in procurement practices by some of its employees.
In a filing on Monday, the company also said it received an additional subpoena from the U.S. Securities and Exchange Commission (SEC) on March 1, related to the assessment of goodwill and intangible asset impairments and a request for documents associated with the procurement business.
On the decline
Martinrea International Inc. (MRE-T) was down 0.3 per cent as automakers and parts manufacturers felt the impact on U.S. president Donald Trump’s threat of higher tariffs on Chinese goods.
Last Thursday, Vaughan, Ont.-based Martinrea reported first-quarter financial results that fell in line with the Street’s expectations.
In a research note released Monday, Paradigm Capital analyst J. Marvin Wolff said: “The North American auto sector is recovering as the economy improves. Martinrea provides a growth play in the auto parts sector with growth occurring on four fronts: improvement in auto sales volumes; new mandate wins; previously won mandates hitting the production floor; and expansion into Europe. We see Martinrea being able to increase profits substantially over the next two years."
Cargojet Inc. (CJT-T) was down 2.1 per cent despite reporting in-line financial results before the bell.
The Mississauga-based company announced revenues were $110.4-million, an increase of $11.2-million from the previous year. Adjusted EBITDA rose $4.8-million, or 17.5 per cent, to $32.3-million.
“We are very pleased with Cargojet’s financial and operating results during the past Quarter” said president and CEO Ajay Virmani in a release. “We continue to benefit as the primary enabler of e-Commerce growth in Canada and to also grow our ad-hoc and ACMI charter business globally. Our entire Cargojet team continues to be strongly focused on prudent cost management; profitable revenue growth and to providing consistent and reliable service levels to our customers and adding value to our shareholders,” he concluded.
The company also announced that "on or about May 8," each of its common and variable voting shares will trade on the TSX under a single ticker, "CJT."
“Together, these changes are intended to facilitate investment by non-Canadians and improve the liquidity for the variable voting shares,” the company stated.
Autocanada Inc. (ACQ-T) dropped 0.8 per cent after a pair of equity analysts downgraded its stock in reaction to its first-quarter results released Friday.
The company generated a net loss attributable to its shareholders of $4.1-million of 15 cents per share versus net income of $4.8-million or 18 cents per share a year earlier.
With files from wires and staff
David Leeder