A roundup of some of the North American equities making moves in both directions today
On the rise
Vancouver-based apparel retailer Lululemon Athletica Inc. (LULU-Q) rose 4.4 per cent on Monday after the company raised its quarterly sales and profit outlook, boosted by strong holiday season demand.
It now expects profit per share for the quarter ending Feb. 2 to be between US$2.22 and US$2.25, up from its prior range of US$2.10 to US$2.13.
Lululemon in December had forecast its holiday quarter sales largely below Wall Street expectations.
See also: Lululemon’s big stretch
Tesla Inc. (TSLA-Q) jumped almost 10 per cent and pushed past US$500 per share after a report said China would not make significant cuts to subsidies for new energy vehicles (NEV) this year.
On the decline
Shaw Communications Inc. (SJR.B-T) was down 0.4 per cent after announcing its earnings dipped in its first fiscal quarter of 2020 even as wireless revenue climbed.
The Calgary-based telecom company says net income came in at $162 million or 31 cents per share for the quarter ending Nov. 30, down from $186 million or 36 cents per share for the same quarter last year.
Shaw says the comparative decline for the first quarter was largely because of a $23 million equity income in the quarter last year from its investment in Corus Entertainment Inc.
Maple Leaf Foods Inc. (MFI-T) slid 1 per cent after its CEO spoke out Sunday against the U.S. government, days after an Iranian missile accidentally shot down a jetliner, killing all 176 people on board – including the family of a company employee.
Michael McCain said in a series of tweets that the time since Wednesday’s crash has not quelled his anger over what he describes as a “needless, irresponsible series of events in Iran.”
…The collateral damage of this irresponsible, dangerous, ill-conceived behavior? 63 Canadians needlessly lost their lives in the crossfire, including the family of one of my MLF colleagues (his wife + 11 year old son)! We are mourning and I am livid. Michael McCain.— Maple Leaf Foods (@MapleLeafFoods) January 13, 2020
Brookfield Renewable Partners (BEP.UN-T, BEP-N) declined 4.1 per cent after it said it would acquire the remaining 38-per-cent stake in TerraForm Power Inc. (TERP-Q) it does not already own, in a deal that values the electricity utility at $3.93 billion, as it looks to boost its power portfolio.
Brookfield Renewable said on Monday the all-stock offer represents an exchange ratio of 0.36 BRP units for each TerraForm class A share, valuing TerraForm at $17.31 per share, an 11-per-cent premium to the stock’s last close.
TerraForm said it has formed a special committee of non-executive, independent directors to review the unsolicited proposal it received on Saturday.
“There can be no assurance that a definitive proposal relating to the proposed transaction will be made, that any such proposal will be recommended or accepted by the committee,” TerraForm said in a separate statement.
Shares of Terraform were up 10 per cent.
Cott Corp. (BCB-T) fell 3.8 per cent on the premarket announcement it will acquire Primo Water Corp. (PRMW-Q), a provider of water dispensers, purified bottled water, and self-service refill drinking water in the U.S. and Canada, for $14 per share in cash and stock, a deal valuing the company at about $775-million.
“The combination of Cott and Primo, along with the recent announcement of Cott’s evaluation of certain strategic alternatives for its S&D Coffee and Tea business, including a sale of S&D, will transition Cott into a pure-play water company,” Cott stated in a release Monday.
Shares of North Carolina-based Primo Water were up over 25 per cent.
Acasti Pharma Inc. (ACST-X, ACST-Q) plummeted almost 65 per cent after it said on Monday its krill oil-derived drug candidate, CaPre, was not more effective than placebo in reducing high levels of triglycerides in a late-stage study.
The Laval-based drug developer said CaPre failed to show a statistically significant reduction in blood triglycerides compared to placebo after 12 weeks and 26 weeks of treatment.
Triglycerides are a type of fat found in blood that contributes to heart disease alongside cholesterol.
With files from Brenda Bouw and wires