Canadian Tire hikes dividend as earnings beat expectations

Canadian Tire Corp. Ltd. raised its dividend as the retailer reported its third-quarter profit and sales grew compared with a year ago. The company says it’s increasing its quarterly dividend to $1.0375 per share compared with its earlier quarterly payment to shareholders of 90 cents.

The improvement came as Canadian Tire says it earned $231.3 million or $3.15 per diluted share for the quarter ended Sept. 29, compared with a profit of $198.5 million or $2.59 per diluted share a year ago. Revenue totalled $3.63 billion, up from nearly $3.27 billion in the same quarter last year.

On a normalized basis, Canadian Tire says it earned an adjusted profit of $3.47 per diluted share for the quarter, up from $2.59 per diluted share a year ago. Thomson Reuters Eikon says analysts on average had expected a profit of $2.85 per share for the quarter. Source: Financial Post

Costco Reports October Sales for 2019

Costco Wholesale Corporation (“Costco” or the “Company”) reported on November 6th that net sales of $11.92 billion for the retail month of October, the four weeks ended November 3, 2019, an increase of 6.8% from $11.16 billion last year. For the nine weeks ended November 3, 2019, the Company reported net sales of $26.33 billion, an increase of 6.2% from $24.80 billion last year.

Comparable sales for Canada saw a 4.9% increase in the 4 weeks, and a 2.9% increased in the 9 week period. When excluding the impacts from changes in gasoline prices and foreign exchange, comparable sales for Canada saw an increase of 6.5% in the 4 week period, and a 5.4% increase in the 9 week period.  Source: Costco

Loblaw Profit Beats Expectation with Sales Boost from Shoppers Drug Mart 

Canadian retailer Loblaw Cos Ltd reported better-than-expected quarterly profit on November 13, as consumers shopped more at its pharmacies and food stores. Loblaw, has been investing in technology to attract customers through personalized promotions as it faces intense competition from U.S. retail such as Walmart Inc and Amazon.com Inc. For the third quarter ended Oct. 5, retail same-store sales in Loblaw’s food unit grew only 0.1%, hurt by Thanksgiving falling in the next quarter. Excluding the impact, food sales grew about 1%.

Comparable sales at its drug unit rose 4.1%. Net earnings attributable to common shareholders rose to $331 million, or 90 cents per share, in the quarter, from $106 million, or 28 cents per share, a year earlier. Excluding one-time items, the company earned $1.25 per share, beating the average analyst estimate of $1.24 per share, according to IBES data from Refinitiv. Loblaw, a subsidiary of the biggest Canadian retail group George Weston, posted revenue of $14.66 billion, a 2.3% rise from a year earlier. Source: Financial Post

Walmart Earnings Beat Estimates, Shares Rise on Higher Outlook Ahead of Holidays 

A strong grocery business helped Walmart’s online sales grow 41% in the third quarter, the company said on November 14, fuelling an earnings beat and 21 quarters of growth in the U.S. Total sales in the period fell short of analysts’ expectations, but Walmart raised its annual earnings outlook — for the second time this year — ahead of the holiday season. Walmart shares were recently up about 1%, having climbed more than 30% this year.

During trading on the morning of November 14, the stock hit a 52-week high of $125.38. Walmart is “prepared for a good holiday season,” CEO Doug McMillon said in the earnings statement. Here’s what Walmart reported for its fiscal third quarter compared with what analysts were expecting, based on Refinitiv data:

  • Earnings per share: $1.16, adjusted, vs. $1.09 expected
  • Revenue: $127.99 billion vs. $128.65 billion expected

Net income for the period ended Oct. 31 grew to $3.29 billion, or $1.15 a share, compared with $1.71 billion, or 58 cents per share, a year ago. Excluding one-time charges, Walmart earned $1.16 per share, topping expectations for $1.09 in a Refinitiv survey of analysts. Source: CNBC

Home Depot Cuts 2019 Forecast After Sales Miss, Shares Drop 

Home Depot shares tumbled about 5% on November 20th after the company said it would take more time for its investments to pay off.

The Atlanta-based home improvement retailer once again cut its 2019 forecast and reported same-store sales well below estimates. Although earnings came in a penny better than expected, the company said revenue, which also missed analysts’ targets, was hurt by spending on improvements to its IT systems, stores, and supply chain.

“We are largely on track with these investments and have seen positive results, but some of the benefits anticipated for fiscal 2019 will take longer to realize than our initial assumptions,” CEO Craig Menear said in the release.

Here’s what Home Depot reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $2.53, adjusted, vs. $2.52 expected
  • Revenue: $27.22 billion vs. $27.53 billion expected
  • Same-store sales growth, global: 3.6% vs. 4.7% expected

Despite the lower forecast, the market for home improvement products remains strong, Oppenheimer analyst Brian Nagel said on CNBC’s “Squawk Box.” He attributed the sales miss to an internal company issue, which he noted is rare for Home Depot, rather than a miss due to economic headwinds, tariffs or lumber price deflation.

“The backdrop of home improvement was quite good,” Nagel said. “The lumber price issue is not as big a deal anymore, weather has been favorable and then we have this, what I have been really been excited about, is this improving overall housing environment.”

Source: CNBC

Lowe’s Shares Jump After Earnings Top Estimates Despite Revenue Shortfall and 2019 Forecast Is Boosted  

On November 20th Lowe’s reported quarterly earnings that beat analysts’ expectations and raised its forecast for the year, even as revenue fell short of projections.

Shares rose more than 5%, hitting a new 52-week high, as investors took the second-straight quarter of better-than-expected results as a sign it is executing its turnaround plan under CEO Marvin Ellison, who took the helm in 2018.

In the third quarter, the company took steps to restructure its operations in Canada, update its e-commerce business and continue its focus on the professional contractor, or pro, customer.

“At first blush, this looks like the turnaround at Lowe’s continues to progress,” Oppenheimer analyst Brian Nagel said on CNBC’s “Squawk Box.”

Here’s what Lowe’s reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.41, adjusted, vs. $1.35 expected
  • Revenue: $17.39 billion vs. $17.68 billion expected
  • Same-store sales growth: 2.2% vs. 3.1% expected

At its Canadian business, the company shook up its leadership and said it plans to close 34 stores in the fourth quarter. Despite the store closures, Ellison said the company is “committed” to its Canadian operations.

“While making decisions that impact our associates and their families is never easy, closing underperforming stores is a necessary step in our plan to ensure the long-term stability and growth of our Canadian business,” said Tony Cioffi, interim president of Lowe’s Canada.

In the third quarter ended Nov. 1, Lowe’s said net income grew to $1.05 billion, or $1.36 per share, from $629 million, or 78 cents per share, a year earlier. Excluding the cost of restructuring its operations in Canada, the company earned $1.41 per share, topping estimates of $1.35 per share in the Refinitiv survey.

Sales grew $17.39 billion, just shy of analyst estimates of $17.68 billion.

Source: CNBC