What Can Investors Expect From Maple Leaf Foods Inc.’s 3rd-Quarter Results?

Maple Leaf Foods Inc. (TSX:MFI) will release third-quarter results today. What do analysts expect to see?

| More on:
The Motley Fool

Maple Leaf Foods Inc. (TSX:MFI), headquartered in Mississauga and a leading provider of consumer meats and protein, will release third-quarter results today. How is the company faring ahead of its earnings release? And what are the analyst expectations for this week’s results? Let’s take a look.

What second-quarter results looked like

Maple Leaf released second-quarter results on July 27 and reported adjusted earnings per share of $0.41. This beat analyst estimates of $0.37 per share. These results also beat 2016’s second-quarter results by 28.13%.

The company currently has a net profit margin of 5.14%, putting it among the leaders for profit in its peer group. As a comparison, High Liner Foods Inc. (TSX:HLF) has a current profit margin of 2.66%. Over the previous three years, revenue growth at Maple Leaf averaged 4.08% annually — behind the industry average of 8.17%.

Maple Leaf is currently trading a few dollars shy of its 52-week high of $35.37. Analysts believe it will trade in the $37 range over the next 12 months, giving it only a little room for growth in the short term if they are correct. The stock’s current indicated annual dividend sits at $0.44 per share for a yield of 1.35%.

What has Maple Leaf been up to this past quarter?

There hasn’t been a whole lot of news about Maple Leaf since its last quarterly report. The company has announced no major changes or deals, and there hasn’t been any negative news about the company this quarter. Everything seems to be status quo right now.

What are the expectations for third-quarter results?

The consensus seems to be the same as those for Maple Leaf’s second quarter. Overall, analysts are looking for earnings of $0.37 per share. No one is expecting any shockwaves this earnings period. Tune in later to find out if analysts were right.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Susan Portelance has no position in any stocks mentioned.  

More on Investing

think thought consider
Tech Stocks

Is CGI Stock a Buy Even With No Dividend Yield?

CGI stock may not have a dividend to speak of. But does that necessarily mean you should ignore this top…

Read more »

A robotic hand interacting with a visual AI touchscreen display.
Tech Stocks

Why Now Is the Time to Invest in Canadian AI Stocks

Are you looking for one of the most solid Canadian AI stocks out there? This one is probably your best…

Read more »

The letters AI glowing on a circuit board processor.
Tech Stocks

Why AI Stocks Should Be in Every Canadian Investor’s Portfolio

AI stocks continue to be one of the best options out there for long-term investing, especially when considering Canadian options.

Read more »

stock research, analyze data
Bank Stocks

Canadian Bank Stocks: Buy, Sell, or Hold?

There are opportunities and risks on the horizon for the Canadian banks.

Read more »

Young Boy with Jet Pack Dreams of Flying
Stock Market

Is Air Canada Stock a Good Buy After Its Q3 Results

Down almost 60% from all-time highs, Air Canada is an undervalued TSX stock that remains an enticing investment in November…

Read more »

cloud computing
Investing

Where to Invest $10,000 in November

Given their solid underlying businesses and healthy growth prospects, I expect these two defensive stocks to outperform uncertain outlook.

Read more »

coins jump into piggy bank
Retirement

Here’s the Average RRSP Balance at Age 44 for Canadians

Holding stocks like Alimentation Couche-Tard (TSX:ATD) in an RRSP is a good way to build your wealth.

Read more »

dividends can compound over time
Dividend Stocks

Want a 7% Yield? The 3 TSX Stocks to Buy Today

These TSX stocks are offering high yields of over 7%, making them attractive for investors seeking steady passive income.

Read more »