Market movers: Stocks seeing action on Wednesday – and why
A round-up of some North American stocks moving in both directions
The Goodfood Market Corp. (FOOD-T) rose after reporting better-than-expected financial results for the first quarter before the bell.
The Montreal-based household meals company announced sales and EBITDA of $ 91.4 million and $ 1.4 million, respectively, beating Street’s projections of $ 87.1 million and $ 0.4 million, respectively. USD. The quarter ended with 306,000 subscriptions, up 33 percent year over year.
In a research note, Acumen Capital analyst Jim Byrne said, “The company’s first quarter / F21 results were positively impacted by the increased demand for home delivery of meal sets and groceries caused by COVID-19. Since the beginning of March, the company has seen an increase in subscribers, order value and order rates due to the pandemic.
“With recent lockdowns in Quebec and Ontario resumed, we believe the momentum should continue to add significant revenue growth over the next few quarters.”
Bausch Health Companies Inc. (BHC-T) posted gains after expecting 2020 sales to beat forecast for the year after a strong close.
The company expects fourth quarter sales of more than $ 2.2 billion.
Full year revenue is also expected to exceed its forecast for $ 7.8 billion to $ 8 billion.
Bausch Health made a statement prior to a presentation at an investor conference.
The company expects to release its full fourth quarter and full year financial results next month.
According to the financial data company Refinitiv, analysts had expected fourth-quarter revenue averaging $ 2.1 billion and full-year revenue of $ 7.9 billion.
Intel Corp. (INTC-Q) jumped after it was announced that it will replace Chief Executive Officer Bob Swan with Pat Gelsinger, CEO of VMware Inc. (VMW-N) next month
Mr Swan is expected to step down on Feb.15, the sources said.
A day after gaining 6.2 percent, General Motors Co. (GM-N) rose further after announcing entry into the growing electric vehicle business.
The new BrightDrop delivery business will put GM in fierce competition in the commercial sector with city rivals Ford Motor Co, as well as startups like Rivian, Arrival and Canoo, which develop commercial electric vehicles for customers from Amazon to Hyundai Motor.
GM expects the U.S. parcel and grocery delivery market to grow to over $ 850 billion by 2025. This is a sector that Tesla sales director Tesla has not yet cracked.
New Fortress Energy Inc. (NFE-Q) rose after it announced on Wednesday that Hygo Energy Transition Ltd, a 50:50 joint venture between Golar LNG Ltd. (GLNG-Q) and Stonepeak Infrastructure Fund II Cayman, to be bought for $ 2.18 billion to expand its presence in South America.
The deal is less than four months after the then managing director of Hygo, which transports liquefied natural gas and operates the associated infrastructure, was named in a corruption investigation in Brazil. The investigation is at an early stage and the former CEO has not been charged.
The energy infrastructure company will acquire all of Hygo’s outstanding shares for 31.4 million NFE Class A shares and $ 580 million in cash.
New Fortress also agreed to purchase Golar LNG Partners LP for approximately $ 251 million, or $ 3.55 per parent unit in cash. The company has also agreed to acquire the general partner of Golar LNG Partners, with the overall agreement valued at $ 1.9 billion.
On the retreat
Canadian convenience store giant Alimentation Couche-Tard Inc. (ATD.BT) crashed after reaching out to French grocer Carrefour SA to complete a friendly transaction that would mean a major strategy change for brand owner Circle K. .
Couche-Tard said in a statement late Tuesday it had “exploratory talks” with Carrefour on a deal the terms of which are still under discussion. It is currently unclear whether the talks will lead to an agreement or a transaction, the company said. Carrefour also confirmed that “very preliminary” discussions were ongoing.
The structure of a potential deal has not been disclosed, but discussions focus on Couche-Tard buying Carrefour in its entirety and selling assets as needed, said a person familiar with the matter. The Globe does not identify the source as they were not allowed to speak to the media.
The takeover of the supermarket operator Carrefour would be a great challenge for Couche-Tard. Carrefour shares are up 10 percent in trading on the Paris Stock Exchange this year, bringing the company’s market capitalization to € 12.6 billion (approximately $ 15.4 billion). Couche-Tard, one of Canada’s top-selling companies, has a market value of $ 47 billion ($ 36 billion).
– Nicolas Van Praet
Shaw Communications Inc. (SJR.BT) was lower after its first quarter results slightly missed analyst expectations, despite a record number of new wireless subscribers following the launch of its new Shaw Mobile service in Western Canada.
The Calgary-based cable company had sales of $ 1.37 billion for the three months ended November 30, 2020, a 0.9 percent decrease from the previous year when it had sales of $ 1.38 billion. Dollar scored. Income for the first quarter was $ 163 million, up 0.6 percent from $ 162 million last year.
The quarterly result was unchanged from the previous year at 31 cents per undiluted and diluted share.
According to the consensus estimate by S & P Capital IQ, analysts had expected sales and earnings of 1.38 billion US dollars at 32 cents per share.
The company recorded 101,029 net new mobile customers in the quarter, including 87,296 postpaid customers and 13,733 prepaid customers. (Postpaid subscribers are those who are billed for the services they use at the end of the month, as opposed to prepaid subscribers who prepay for wireless services.)
– Alexandra Floors
The Target Corp. (TGT-N) was in decline, despite expanding its strong sales streak through a pandemic Christmas season after a tough online push and increased efforts to offer alternatives to customers trying to minimize risk.
The retailer reported Wednesday that online sales rose 102 percent between November and December. Sales in the branches that have been open for at least a year rose by 4.2 percent. Customer traffic increased 4.3 percent and average revenue per customer increased 12.3 percent as trips to different stores were consolidated during the pandemic.
Target continued to gain market share in all five core businesses. Sales were strongest in the living and furniture departments.
Target was forced to come up with a new strategy while the store aisles usually work with customers leading to Christmas.
Starting in early October, prices were aggressively reduced to get an early start to an unprecedented shopping season. This made up for the store closings on Thanksgiving, which has been the starting gun for the Christmas shopping blitz for years. Black Friday doorbuster deals went online as Target and other retailers tried to manage traffic in stores.
Blackberry Ltd. (BB-T) was lower after Globe and Mail reported 90 patents held by controversial Chinese tech giant Huawei Technologies Co Ltd. to have sold. This is part of a broader effort by smartphone pioneer Waterloo, Ontario, to unload most of its intellectual property patents.
US Patent and Trademark Office (USPTO) records show that BlackBerry transferred ownership of the patents to Huawei on December 23. They represent a tiny fraction of BlackBerry’s 38,000 patents, but they cover many important advances that date back to the world’s leading smartphone manufacturers protecting the intellectual property of their handheld devices.
While the sale marks the final step in a multi-year effort by John Chen, BlackBerry chief executive officer, to realign the company, it raises questions about the Canadian government’s innovation strategy and its commitment to protecting critical assets from falling into the hands of foreigners Enterprises, especially those whose motives have sounded the alarm among Canada’s national security allies.
– Sean Silcoff
First Capital Real Estate Investment Trust (FCR.UN-T), a retail landlord, fell in the wake of halving its monthly payout as economic downturns escalated across Canada. This was the second major retail REIT to cut its payout last month.
First Capital is now paying a payout of 43.2 cents per share of 86 cents per year, saving the REIT around $ 95 million annually. The decision was announced after stock markets closed on Tuesday, and First Capital management is hoping to bring dividends back to previous levels after two years.
In a statement, management said the cut gives the REIT “significant financial flexibility to advance its strategic goals.”
In addition to the difficult economic environment, First Capital came under pressure to reduce its debt burden after borrowing hundreds of millions of dollars to buy back some of its units from a large investor.
Many retail REITs, including First Capital, have also committed to funding new condominium and rental housing developments in shopping malls and other locations to diversify their real estate mix as more purchases are made online.
– Tim Kiladze
With files from employees and wires