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A roundup of some of the North American equities making moves in both directions today

On the rise

Cogeco Communications Inc. (CCA-T) jumped 5.4 per cent in early afternoon trading on Wednesday after announcing that its revenues rose year-over-year to $608.6-million from $554.1-million.

Net income attributable to shareholders fell to $25.7-million or $1.47 a share from $46.6-million or $2.82 a year earlier.

“We are very satisfied with our overall results for the second quarter of fiscal 2019,” said president and CEO Philippe Jette.

In a research note, Desjardins Securities analyst Maher Yaghi said: “CCA’s 2Q FY19 results were slightly above expectations on the financial front but missed targets from a subscriber count standpoint. In Canada, improved pricing supported the beat while margin improvement generated decent U.S. results.”

Trican Well Service Ltd. (TCW-T) jumped over 6 per cent after Clarke Inc. (CKI-T) announced it has acquired ownership of, and control over, 29,444,400 common shares, representing 10-per-cent of the outstanding Trican shares.

“Trican is one of the largest oilfield service companies in Western Canada, has among the best balance sheets of any oilfield service company with minimal debt and has a collection of assets and businesses that, in our view, is worth significantly more than the company's current share price implies," said Clarke president and CEO Michael Rapps, who Trican has agreed to nominate for election as a director.

“We commend Trican for taking advantage of the opportunity the market is presenting by repurchasing more than 16% of its shares over the last 18 months and we encourage the company to continue doing so as long as the market undervalues the company. We believe Trican can continue to strengthen its operations and capital structure throughout the current downturn. Together with relief from the perfect storm the Canadian energy is currently facing, these actions should result in significant value creation for all Trican stakeholders.”

Aurora Cannabis Inc. (ACB-T) sat 3.4 per cent higher after announcing on Wednesday its Aurora Sun facility, currently under construction in Medicine Hat, will be expanded to 1.62 million square feet, which represents a 33-per-cent increase from its originally planned 1.2 million square feet.

The Edmonton-based company said it is “confident” in projecting the facility will have expected annual production capacity in excess of 230,000 kilograms.

“Aurora Sun represents the next evolution in our Sky Class facility design, delivering massive scale, low cost production, and consistent, high-quality cannabis," said Aurora CEO Terry Booth in a statement. “Particularly in newly-opened markets, establishing first-mover position and embedding Aurora’s market share and brand requires a stable and reliable supply of high-quality cannabis for these markets. The increased scale of Aurora Sun reflects our expectations for the long-term growth in global demand, especially the higher margin international medical markets which will be faced with significant supply shortages for the foreseeable future. Sun is also designed with flexibility in mind to enable us to quickly meet changing market demands, particularly as breeding and cultivation technologies evolve and as customer preferences and requirements change.”

Levi Strauss & Co. (LEVI-N) increase 5.8 per cent after reporting a 7-per-cent rise in quarterly revenue on Tuesday after market close, driven by its strategy to invest in its retail stores and online business.

Levi, which returned to public markets last month, said net income for the quarter was US$146.6-million, or 37 US cents per share, versus a loss of US$19 million, or 5 US cents per share, a year earlier, when it incurred a tax-related charge.

On an adjusted basis, net income grew 81 per cent to US$151-million.

"We delivered our sixth consecutive quarter of double-digit constant-currency revenue growth," said president and chief executive officer Chip Bergh. "Growth was broad-based across all three regions and all channels, demonstrating that our strategies are working and our investments are paying off."

On the back of a reassuring profit forecast for the second quarter and better-than-anticipated first-quarter results, shares of Delta Air Lines Co. (DAL-N) rose 1.2 per cent.

Delta, which does not own Boeing Co.’s (BA-N) grounded 737 Max jets, projects second quarter to be in the range of US$2.05 to US$2.35 per share. Analysts on the Street were projecting US$2.12. Total unit revenue, is expected to rise between 1.5 and 3.5 per cent.

In the first quarter, the No. 2 airline in the U.S. logged net income of US$730-million, up from US$557-million a year earlier. On an adjusted basis, it earned 96 US cents per share, beating expectations of 90 US cents.

“Delta is off to a solid start in 2019. Our March quarter performance demonstrates the power of our growing brand preference, our unmatched competitive advantages, and most importantly the Delta people who are committed to providing the best travel experiences for our customers every day. I’m pleased to recognize their efforts with $220 million toward next year’s profit sharing,” said CEO Ed Bastian. “With the momentum in our business and our American Express contract renewal, we have increased confidence in achieving our full-year plan of top-line growth, margin expansion and double-digit earnings growth.”

Ford Motor Co. (F-N) was up 0.8 per cent in the wake of a managerial shakeup that saw two company veterans named to lead its auto and mobility businesses.

Joe Hinrichs was named president of its automotive unit and Jim Farley as president, new businesses, technology & strategy, effective May 1. Both the executives will report to Chief Executive Officer Jim Hackett, the company said.

“In the past two years, we have made tangible progress in improving the fitness of our business, overhauled our regional strategies, created a winning product portfolio, and are working to transform Ford to succeed in an era of profound change and disruption,” Hackett said.

“With this strong foundation in place for our auto and mobility businesses, we can now accelerate our transformation.”

On the decline

A week ahead of the release of its quarterly results, Metro Inc. (MRU-T) fell 1.2 per cent after an equity analyst at Raymond James downgraded the retailer’s stock.

“We believe on current estimates, that not only is there a modest probability of any material positive earnings surprises through our forecast window, but also that there is a limited chance of further (material) multiple expansion from current levels,” he said. "Our view on the multiple is that not only does making the Jean Coutu acquisition work get harder from here, but that (necessarily) the focus (of both talent and resources) could create ripple effects,” said Kenric Tyghe.

DIRTT Environmental Solutions Ltd. (DRT-T) dipped 2.6 per cent after an Industrial Alliance Securities analyst downgraded its stock following a 49-per-cent rise in price thus far in 2019.

“2019 will be a transition year. With a mostly changed, and beefed up, senior management team, DIRTT is finalizing restructuring efforts and establishing a platform for sustainable growth that will also deliver strong profitability and cash generation,” said Neil Linsdell.

EnWave Corp. (ENW-X) was down 0.5 per cent after it announced that it has signed a royalty-bearing commercial license agreement with Fresh Business Consulting S.L., which the company says is a part of a diversified investment and consulting firm that has business interests in Spain, the United Kingdom and Peru.

“The Agreement grants Fresh Business the exclusive rights to produce a variety of premium food products in Peru," the company said. "By processing in Peru, Fresh Business is well positioned to take advantage of the diverse, locally grown agricultural products while utilizing EnWave’s proprietary REV technology to create value-added products for export into western markets. REV™ technology is a proven method to create healthy, premium fruit and vegetable products that can be sold as ingredients or as retail consumer products. This Agreement further validates the value proposition for EnWave’s technology to drive innovation in the global fruit and vegetable market vertical.”

With files from staff and wires

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 28/03/24 1:38pm EDT.

SymbolName% changeLast
DAL-N
Delta Air Lines Inc
+1.18%47.87
MRU-T
Metro Inc
-0.56%72.72
DRT-T
Dirtt Environmental Solutions Ltd
-4.29%0.67
ENW-X
Enwave Corp
0%0.28
ACB-T
Aurora Cannabis Inc
-7.92%5.93
CCA-T
Cogeco Communications Inc
-0.03%60.08
LEVI-N
Levi Strauss & Company Cl A
+3.2%19.99
F-N
Ford Motor Company
+1.68%13.28
TCW-T
Trican Well
0%4.15
CKI-T
Clarke Inc
0%19.22

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