A roundup of some of the North American equities making moves in both directions today
On the rise
Aritzia Inc. (ATZ-T) jumped almost 17 per cent on Thursday after announcing it earned $34.8-million in its third quarter, up from $32.6-million a year earlier, as net revenue grew 10 per cent compared with a year ago.
The Vancouver-based fashion retailer says its net revenue totalled $267.3 million in the quarter ended Dec. 1 compared with $242.9 million in the same quarter last year.
Comparable store sales, a key metric for retailers, were up 5.1 per cent.
Pembina Pipeline Corp. (PPL-T) rose 4.4 per cent after Kinder Morgan Inc. (KMI-N) announced it has sold all of its almost 25 million shares in the company it received in connection with Pembina’s acquisition of the outstanding common equity of Kinder Morgan Canada Ltd. (KML-T).
Kinder Morgan plans to use the after-tax US$764-million proceeds of the stock to pay down debt.
Shares of Beyond Meat Inc. (BYND-Q) shares rose 10.9 per cent after McDonald’s Corp. said on Wednesday it will expand its trial in Canada of vegan burgers as the world’s biggest fast food chain tests the viability of a broader rollout.
Coca-Cola Co. (KO-N) was up 1.8 per cent after an equity analyst at Credit Suisse upgraded its stock to “outperform,” expecting revenue to grow at the high-end of the company’s 4 per cent to 6 per cent forecast for several years.
In a research note, Raymond James analyst Chris Cox said the budget “sets the stage for significant inflection.”
Mr. Cox said: “The key story coming out of this year’s budget announcement is the visible inflection in both liquids production and free cash flow during 2020. With liquids production more than doubling over the course of the year, Advantage will finally see the story transition from a low-cost, dry-gas producer to a liquids-rich producer, with margins beginning to compete with peers. Furthermore, with major infrastructure developments at Wembley and Progress complete by year-end, we see the company in a position to generate durable free cash flow from 4Q20 onwards, all while continuing to deliver production growth across the four plays in the portfolio.”
HP Inc. (HPQ-N) increased 1.5 per cent after it said on Thursday that Xerox Holdings Corp. (XRX-N) securing financing for its US$33.5-billion takeover offer for the personal computer maker is not a basis for a discussion and reiterated that the proposal still undervalues the company.
The U.S.-based printer maker had said on Monday it secured US$24-billion in financing for the proposal, a deal that HP is opposing. “Your letter dated January 6, 2020 regarding financing does not address the key issue – that Xerox’s proposal significantly undervalues HP – and is not a basis for discussion,” the company said in a letter to Xerox on Wednesday.
Shares of Xerox were 1.9 per cent higher.
Shares of Apple Inc. (AAPL-Q) hit a new intraday high on Thursday, sitting 2.2 per cent higher after government data showed on Thursday sales of its iPhones in China in December jumped more than 18 per cent year on year.
China is gearing up for the Lunar New Year in late January, a major gift-giving holiday. Apple shipped roughly 3.2 million phones in China in December, data from the China Academy of Information and Communications Technology and Reuters calculations showed. That was up from 2.7 million a year earlier.
On the decline
Cenovus Energy Inc. (CVE-T) was down 0.5 per cent on the heels of unveiling plans to reduce per-barrel greenhouse gas emissions by 30 per cent by the end of 2030, as the country’s oil industry faces growing pressure from environmental activists.
The Alberta-based integrated oil and gas company said it will spend an additional $1.5-billion on businesses run by the country’s indigenous communities.
Opposition from environmental and indigenous groups have stalled new pipeline projects in Canada and the United States that are needed to move Canadian crude to refineries. Investors in the region have also become more vocal about environmental, social and governance issues.
First Quantum Minerals Ltd. (FM-T) was down 2.9 per cent following the announcement of its preliminary production results for the final quarter of 2019 and guidance for production, capital expenditure and costs for the years 2020 to 2022.
It also announced it is launching an offering of an additional $300-million principal amount of its Senior Notes due 2023.
U.S. retailer Kohl’s Corp. (KSS-N) plummeted 6.6 per cent after it said on Thursday it expects full-year earnings to come in at the bottom end of an already lowered forecast, blaming weak demand for women’s apparel during the crucial holiday shopping season.
The department store operator posted a 0.2-per-cent drop in comparable sales in November and December compared with a 1.2-per-cent rise a year earlier.
The downbeat report comes a day after rival Macy’s Inc. (M-N) surprised investors with a smaller-than-feared drop in same-store sales during November and December, following its own earlier profit warning.
In November, the company cut its annual profit forecast to $4.75 to $4.95 per share from $5.15 to $5.45. Kohl’s blamed weakness at its women’s apparel business back then as well.
Retail rival J.C. Penney Co Inc. (JCP-N) slid 10 per cent after it also posted weak holiday season sales.
Macy’s was 2 per cent lower.
Shares of Bed Bath & Beyond Inc. (BBBY-Q) lost 19.3 per cent after the retailer pulled its annual financial guidance in the wake of a weak third-quarter profit and lower-than-expected sales.
For the third quarter ended Nov. 30, Bed Bath & Beyond reported a loss of 38 US cents, on an adjusted basis, while analysts were expecting a profit of 2 US cents, according to IBES data from Refinitiv.
Net sales during the quarter fell 9 per cent to US$2.76-billion, due to a shorted holiday season and a late U.S. Thanksgiving holiday in 2019, the company said. Analysts had been looking for sales of US$2.85-billion.
The results were released after the close of trading on Wednesday.
With files from Brenda Bouw, Terry Weber and wires