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Thomson Reuters raised its revenue forecast for 2022 after beating expectations in the first quarter. (Photo: 123RF)

News Basics

• Thomson Reuters raises its revenue forecast for 2022. Thomson Reuters raised its revenue forecast for 2022 after beating expectations in the first quarter, benefiting from strong growth in its three major divisions.

• Restaurant brands have exceeded expectations for quarterly sales. Restaurant Brands International beat expectations for its quarterly revenue, benefiting from higher prices and increased restaurant traffic at the Burger King chain, as customers returned to pre-pandemic habits.

• BP increases its share buybacks after its costly exit from Russia. BP posted its biggest quarterly loss after it wrote off a $24 billion divestment from its Russia business, but strong operating performance linked to higher oil and gas prices helped the British energy company increase its share buybacks.

• Marathon is profitable thanks to the recovery in gasoline demand. Marathon Petroleum posted a profit in the first quarter, compared to a loss a year ago, with demand for fuels and refined products recovering to levels close to pre-pandemic levels amid tight supply.

• Nigeria buys potash from Canada instead of Russia. Nigeria was forced to buy emergency purchases from Canada in April after the country was unable to import fertilizers from Russia due to Western sanctions, according to the head of the country’s sovereign investment authority. Nigeria, NSIA.

(Re)read all market news

Directions before opening

The major Canadian stock index futures declined slightly due to weak oil and gold prices. US stock futures are down as investors remain nervous awaiting the Federal Reserve’s policy decision this week. Most European stocks rose, benefiting from positive earnings releases and a move in the banking sector, but the FTSE 100 fell as the pound’s strength weighed on exporting companies. The Chinese and Japanese markets were closed for a public holiday, while the Hong Kong stock exchange held the previous day’s gains after the rally recorded by HSBC. The US dollar is declining against most of the major currencies due to the expected rise in the US interest rate.

Nicknames to follow

• Nutrients: The company on Monday raised its full-year profit forecast well above previous expectations, after its first-quarter profit increased more than tenfold, as the world’s largest fertilizer producer benefited greatly from rising crop nutrients. Nutrien expects its adjusted earnings for 2022 to be between $16.2 and $18.7 per share, compared to the previous range of $10.2 to $11.8 per share. According to data from Refinitiv, analysts, on average, expected $15.2 per share. First-quarter earnings jumped to $1.39 billion, or $2.49 per share, from $133 million a year earlier, or $0.22 per share. Excluding some items, Nutrien earned $2.7 per share, and lost the target $2.75.

• Restaurants of international brands: The company beat expectations for its quarterly revenue, benefiting from higher prices and increased restaurant traffic at the Burger King chain, as customers returned to their pre-pandemic habits. Those price increases have allowed the company to offset the decline in comparable sales for its Popeyes chain, which is struggling with a labor shortage and fierce competition from competitors who have brought similar products to market. The company’s total revenue for the first quarter has increased from $1.26 billion to $1.45 billion since the same period last year, compared to analysts’ average forecast of $1.39 billion. Net income attributable to common shareholders increased from $179 million to $183 million over the past year, an increase of $0.58 to $0.59 per share.

• Thomson Reuters: The company raised its revenue forecast for 2022 after beating expectations in the first quarter, benefiting from strong growth across its three major divisions. Thomson Reuters said that while the results give it confidence in its financial outlook, the ongoing pandemic and geopolitical risks, as well as a possible deterioration in the economy, could hurt its ability to achieve its goals. The company reported adjusted earnings of $0.66 per share, or $0.05 more than Wall Street had expected. Operating profit rose 7% to $414 million, while total revenue rose 5.5% in the first quarter to $1.67 billion. According to Refinitiv data, analysts expect revenue to average $1.6 billion. The company now expects a 5.5% increase in revenue this year, compared to a previous forecast of 5%. The three main divisions — law, tax and accounting, and corporate — saw their quarterly sales increase, buoyed by an 11% increase in taxes. Reuters News revenue increased 9% to $176 million.

Recommendations

• Capital strength: ATB Capital Markets has raised its price target from C$44 to C$45 as growth remains the company’s top priority after announcing very strong first-quarter results.

• Cargo Jet: ATB Capital Markets raises its price target from C$225 to C$230 after publishing record first-quarter results.

• El Dorado Gold: Haywood Securities lowered its price target from C$20.5 to C$17.5 due to colder weather across all operating areas and labor shortages related to COVID-19, which had an impact on production and costs.

• Nomad Royalty Company: Haywood Securities is changing its assessment and recommending a positive response to the offer, saying that a definitive deal agreement with Sandstorm Gold Ltd will provide the company’s shareholders with greater scope, greater liquidity and better portfolio diversification.

• West Fraser Timber: CIBC raises its price target from CA$126 to CA$146 as the company is well positioned to benefit from rising housing starts in the US.

The main indicators on the agenda

No major indicators expected today.

publish results

May 3

Athabasca Oil: Earnings per share forecast for the first quarter of C$0.07

B2Gold: Earnings per share for the first quarter forecast $0.05

International group necklaces: Earnings per share forecast for the first quarter of $1.22

Frontera energy: Earnings per share forecast for the first quarter of $0.33

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

International Petroleum: Earnings per share forecast for the first quarter of $0.38

Live Works: Earnings per share forecast C$0.18 in the first quarter

Golden Monday: Forecast earnings per share for the first quarter of $0.24

International restaurant brands: Earnings per share forecast for the first quarter of $0.63

Contact for metals: Earnings per share forecast of $1.24 CAD in the first quarter

SSR Mining: Forecast earnings per share for the first quarter of $0.29

Thomson Reuters: Earnings per share forecast for the first quarter of $0.62

Waste connections: Expected earnings per share for the first quarter of $0.83

May 4

Altus group: Earnings per share forecast for the first quarter of C$0.27

Barrick Gold: Forecast earnings per share for the first quarter of $0.24

Canfor: Earnings per share forecast for the first quarter of C$4.42

Centra Gold: Earnings per share forecast for the first quarter of $0.15

Constellation Program: Expected earnings per share for the first quarter of $11.54

Dundee Precious Metals: Earnings per share forecast for the first quarter of $0.21

Fortis: Earnings per share forecast C$0.78 in the first quarter

Franco Nevada: Expected earnings per share for the first quarter of $0.96

Environmental GFL: Loss per share forecast of C$0.02 in the first quarter

Gildan Sportswear: Earnings per share forecast for the first quarter of $0.51

Great West Lefko: Earnings per share forecast C$0.86 in the first quarter

Green thumb industries: Expected earnings per share for the first quarter of $0.06

Home Capital Group: $1.17 CAD forecast first quarter earnings per share

Loblaw Companies: Earnings per share forecast for the first quarter of C$1.32

Maple Leaf Food: Earnings per share forecast C$0.09 in the first quarter

OpenText: Earnings per share forecast for the third quarter of $0.67

Spin Master: Earnings per share forecast for the first quarter of $0.17

Trans Alta Renewable Energy: Earnings per share forecast of $0.20 CAD in the first quarter

company agenda

8:00 am TMX group: Q1 earnings conference call

08:30 Mega Egy Energy: Q1 earnings conference call

09:00 Gibson Energy: Q1 earnings conference call

09:00 Live Works: Q1 earnings conference call

09:00 Thomson Reuters: Q1 earnings conference call

10:00 a.m. Barrick Gold: Annual general meeting of shareholders

10 a.m. Magna International: Annual general meeting of shareholders

10 a.m. Nutrien: Q1 earnings conference call

10:30 a.m. LifeWorks: Annual general meeting of shareholders

11:00 am Altus group: Annual general meeting of shareholders

11:00 am Colliers International Group: Q1 earnings conference call

12:00 Gibson Energy: Annual general meeting of shareholders

12:00 Meg Power: Annual general meeting of shareholders

1:00 p.m. Imperial Oil: Annual general meeting of shareholders

2:00 PM TMX Group: Annual general meeting of shareholders

2:30 pm. Canfor: Annual general meeting of shareholders

4:00 PM Iamgold: Annual general meeting of shareholders

4:00 p.m. The new gold: Annual general meeting of shareholders

5:00 p.m. Mullen Group: Annual general meeting of shareholders

Coupon seconds

The main coupon is not expected to separate today.

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

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