Canadian earnings are set to hit their stride this week and Tuesday will see four prominent large caps make their quarterly release available to the masses.
Suncor Energy (TSX:SU,NYSE:SU) (technically releases at 10pm EST Monday (weird?)), Thomson Reuters (TSX:TRI,NYSE:TRI), Canadian Oil Sands (TSX:COS), and Yamana (TSX:YRI,NYSE:AUY) are in the starter’s gate, ready to roll. Tabled below is a snapshot for each of what to expect:
| Company Name |
Exp Q1 EPS |
YoY % Chg |
Consensus |
12 month return |
| Yamana Gold |
$0.19 |
-17.4% |
Outperform |
-15.7% |
| Suncor Energy |
$0.76 |
-18.3% |
Outperform |
-6.5% |
| Thomson |
$0.32 |
-27.3% |
Hold |
15.6% |
| Cdn Oil Sands |
$0.43 |
-34.8% |
Hold |
-10.4% |
Source: Capital IQ
All four are expected to report earnings dramatically below year ago levels. Three of the four have obvious ties to the commodity world and therefore have been impacted by weaker prices in that arena. Each of their respective 1-year stock returns are in-line with the direction that earnings are expected to take.
Thomson released guidance for the quarter at its February investor day and even though earnings are expected to be down year-over-year like the others, the company has strung together several stronger than expected quarters, hence the positive move for the stock. We’ll see if the string continues tomorrow.
Foolish Takeaway
The long-term implications that tomorrow’s release has for any of these companies is likely to be minimal, however, a deviation from what’s expected could cause the shares to make a short-term move. If you have an idea what to look for and are ready to act should an anomaly appear, you may find yourself with a nice little opportunity to transact.
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Fool contributor Iain Butler is short $14 June 2013 put options on Yamana Gold and owns shares in Yamana Gold and Canadian Oil Sands outright. The Motley Fool does not own shares in any of the companies mentioned.
