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Amazon.com revealed a disappointing quarter and forecast. (Photo: 123RF)

News Basics

• Exxon makes higher profits thanks to oil and gas prices. ExxonMobil doubled its earnings per share in the first quarter, benefiting from higher oil and gas prices, even though the company posted a $3.4 billion write-down due to a planned withdrawal of its Russian operations.

• Chevron nearly quadrupled its profits thanks to oil prices. Chevron’s first-quarter profit nearly quadrupled from the same period a year earlier, easily beating Wall Street expectations, as oil and gas prices soared after China invaded Ukraine and Russia.

• Magna lowers its earnings outlook due to context. Magna International lowered its full-year profit forecast as China’s strict health measures on COVID-19, rising inflation and raw material costs likely hurt auto sales.

• Apple anticipates more supply problems. Apple said Thursday it expects bigger problems as COVID-19 health measures hamper production and demand in China, and the war in Ukraine is hurting sales and growth in services, while the iPhone maker sees this sector as an engine of expansion.

• Amazon did not live up to expectations due to high costs. Amazon.com reported a disappointing quarter and forecast Thursday as the e-commerce giant was mired in rising costs of managing its warehouses and delivering packages to customers.

(Re)read all market news

Directions before opening

The main Canadian stock index futures slipped slightly, following the trend seen on Wall Street after recent earnings releases in the technology sector, as investors await the release of inflation data today. US stock futures fell after Amazon reported a disappointing quarter and Apple delivered a disappointing forecast, adding pressure on growth-related stocks. European stocks are rising backed by very good results announcements. Chinese stock markets ended the session in positive territory after authorities pledged to bring stability to the economy and financial markets through their policies. Gold prices are on the rise, taking advantage of the decline in the US dollar. China’s containment measures have pushed up oil prices.

Nicknames to follow

consequences

• Magna International: The auto parts maker cut its full-year profit forecast as China’s strict health measures over the coronavirus, rising inflation and raw material costs likely hurt auto sales. Magna also lowered its forecast for light vehicle production for this year in North America and Europe as concerns about semiconductors persist. Magna said it expects 2022 net income attributable to $1.3-1.5 billion, down from its previous forecast of $1.7-1.9 billion. Adjusted earnings per share for the quarter ended $1.28 per share, compared to analysts’ average forecast of $1.10 per share. Canada-based Aurora Inc reported net revenue of $9.64 billion in the first quarter, beating analysts’ expectations of $9.08 billion.

Aharon

• Canadian National Railways and Canadian Pacific Railway: Food and grain companies said at a hearing this week that a backlog of U.S. railroad work is delaying shipments of grain as well as processed flour and corn syrup, contributing to the country’s inflation problem. “It’s the price of bread that’s going up. According to Martin J. Oberman, president of the Surface Transportation Board (STB), which oversees Class A rail carriers, who organized the session. BNSF Rail for Berkshire Hathaway, Union Pacific, Norfolk Southern, CSX, Rail Canadian National Rail and Canadian Pacific Railway are in. John Setterdale, director of cooperative products and services at Landus, said in a letter to STB that rail transit times at the farmer-owned cooperative have more than doubled. More recent times and increased demand for freight at the end of 2021. But shippers accuse railroads of taking cost-saving measures before the pandemic, including reducing workforces, hoarding locomotives to save fuel and extending train lengths up to 3 miles, which they say have increased congestion, stops and delays .

Recommendations

• Golden Almos: The National Bank of Canada raised the outperformance sector rating to reflect management’s shift in project strategy to focus on the island’s Phase III expansion before allocating significant development capital to Lynn Lake.

• Bytex Energy: National Bank of Canada raised its target price from C$8.75 to C$9.5 after the company released first-quarter financial and operating results that were in line with expectations.

Canadian services: RBC raised its price target from C$38 to C$41 after the company released better-than-expected first-quarter results.

• North American Construction Group: CIBC cut its price target from C$23 to C$22 after the company’s first-quarter results highlighted the negative impact on margins from inflationary pressures and a lack of technicians.

• Toromont Industries: RBC raises its price target from C$126 to C$129 on strong demand and performs another good quarter despite supply challenges.

The main indicators on the agenda

08:30 (approx) GDP, monthly variable (Feb): consensus 0.8%; Previous 0.2%

11:00 a.m. (approx.) Monthly Budget Balance (Feb): Ex-C$5.18B

11:00 a.m. (approx) Budget balance for the current year (Feb): Previous -CA 75.29 billion dollars

publish results

April 29

Imperial Oil: Earnings per share are expected to be $1.87 CAD in the first quarter

Magna International: Earnings per share forecast for the first quarter of $1.12

TC power: $1.11 CAD forecast first quarter earnings per share

May 2

Capital strength: Expected earnings per share for the first quarter of 0.73 Canadian dollars

Cargojet: C$1.46 forecast first-quarter earnings per share

Gibson Energy: Earnings per share forecast C$0.33 in the first quarter

MEG Energy: Earnings per share forecast CAD 0.92 in the first quarter

new gold: Expected earnings per share for the first quarter of $0.02

Nutrients: Forecast earnings per share for the first quarter of $2.75

TMX group: Earnings per share forecast of $1.73 CAD in the first quarter

company agenda

08:00 Magna International: Q1 earnings conference call

08:30 Agnico Eagle Mines: Q1 earnings conference call

08:30 Fairfax Financial Holdings: Q1 earnings conference call

08:30 TFI International: Q1 earnings conference call

11:00 AM Agniko Eagle Mines: Annual general meeting of shareholders

11:00 AM Bitex Energy: Q1 earnings conference call

11:00 AM Imperial Oil: Q1 earnings conference call

11:00 a.m. Bassoon systems: Q1 earnings conference call

11:30 a.m. Eldorado Gold: Q1 earnings conference call

11:30 AM West Fraser Timber: Q1 earnings conference call

12:00 TC Power: Annual general meeting of shareholders

1:00 p.m. Safe Energy Services: Annual general meeting of shareholders

3:00 pm Alta Gas: Annual general meeting of shareholders

3:00 pm Capital strength: Annual general meeting of shareholders

3:00 PM TC Energy: Q1 earnings conference call

Coupon seconds

Bank of Montreal: $1.33 Canadian dollars

Amira: Amount of 0.66 Canadian dollars

All analyst forecasts are based on I/B/E/S data from Refinitiv.

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