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

NEWS ESSENTIALS

• 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 across its three main divisions.

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

• BP increases its share buybacks after a costly exit from Russia. BP posted its largest quarterly loss after taking a US$24 billion write-down to divest from its Russia business, but a strong operational performance linked to soaring oil and gas prices helped the British energy company to increase its share buybacks.

• Marathon generates a profit thanks to the recovery in demand for gasoline. Marathon Petroleum posted a profit in the first quarter, compared with a loss a year ago, as demand for fuel and refined products recovered to near pre-pandemic levels amid limited supply.

• Nigeria buys potash from Canada rather than Russia. Nigeria had to buy emergency from the Canadian in April after the country was unable to import the fertilizer from Russia due to Western sanctions, according to the head of the sovereign investment authority of the country. Nigeria, NSIA.

(Re)read all market news

TRENDS BEFORE OPENING

Futures for Canada’s main equity index are down slightly on weak oil and gold prices. U.S. stock futures are down as investors remain nervous awaiting the Federal Reserve’s decision on its policies this week. Most European stocks are up, benefiting from positive earnings releases and an advance in the banking sector, but the FTSE 100 fell as the strength of the pound weighs on exporting companies. The Chinese and Japanese markets were closed due to a public holiday, while the Hong Kong stock exchange retained the previous day’s gains after the rise recorded by HSBC. The US dollar is falling against most major currencies due to the expected rate hike in the United States.

TITLES TO FOLLOW

• Nutrien: The company on Monday raised its full-year profit forecast to well above previous ones, after increasing its first-quarter profit more than tenfold, as the world’s largest fertilizer producer benefited greatly from higher crop nutrients. Nutrien expects its adjusted earnings for 2022 to be between US$16.2 and US$18.7 per share, compared with the previous range of US$10.2 to US$11.8 per share. According to data from Refinitiv, analysts on average were expecting $15.2 per share. First quarter earnings climbed to US$1.39 billion, or US$2.49 per share, from US$133 million a year ago, or US$0.22 per share . Excluding certain items, Nutrien earned US$2.7 per share, missing the US$2.75 target.

• Restaurant Brands International: the company exceeded expectations for its quarterly revenue, benefiting from higher prices and increased restaurant traffic in its Burger King chain, as customers returned to their pre-pandemic habits. These price increases have allowed the company to offset a decline in comparable sales of its Popeyes chain, struggling with labor shortages and fierce competition from rivals who have brought similar products to market. Total company revenue for the first quarter has risen from US$1.26 billion to US$1.45 billion since the same time last year, compared to analysts’ average expectation of $1.39 billion US. Net income attributable to common shareholders rose from US$179 million to US$183 million over the past year, an increase of US$0.58 to US$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 main divisions. Thomson Reuters said that while the results give it confidence in its financial outlook, the ongoing pandemic and geopolitical risks, as well as possible deterioration in the economy, could hurt its ability to hit its targets. The company posted adjusted earnings of US$0.66 per share, or US$0.05 more than Wall Street expected. Operating profit was up 7% to US$414 million, while total revenue rose 5.5% in the quarter to US$1.67 billion. According to data from Refinitiv, analysts on average expected revenue of US$1.6 billion. The company now forecasts a 5.5% increase in revenue this year, compared to the previous forecast of 5%. The three main divisions – law, tax and accounting, corporate – all saw an increase in their quarterly sales, supported by an 11% increase in the area of ​​tax. Reuters News revenue rose 9% to US$176 million.

RECOMMENDATIONS

• Capital Power: ATB Capital Markets raises its target price from C$44 to C$45 as growth remains the company’s top priority following the release of very strong first quarter results.

• Cargojet: ATB Capital Markets raises target price from C$225 to C$230 after posting record first-quarter results.

• Eldorado Gold: Haywood Securities cuts target price from C$20.5 to C$17.5 due to significantly colder weather in all operating areas and COVID-19 related labor shortages , which had an impact on production and costs.

• Nomad Royalty Company: Haywood Securities changes its assessment and recommends a positive response to the offer, saying a definitive transaction agreement with Sandstorm Gold Ltd will provide the company’s shareholders with greater scale, more liquidity and better portfolio diversification.

• West Fraser Timber: CIBC raises its target price from C$126 to C$146 as the company is well positioned to take advantage of rising US housing starts.

MAIN INDICATORS ON THE AGENDA

No major indicators expected today.

PUBLICATIONS OF RESULTS

May 3

Athabasca Oil: Q1 earnings per share forecast of CA$0.07

B2Gold: Q1 earnings per share forecast of US$0.05

International Group Necklaces: Q1 earnings per share forecast of US$1.22

Frontera Energy: Q1 earnings per share forecast of US$0.33

Iamgold: Q1 earnings per share forecast of US$0.02

International Petroleum: Q1 earnings per share forecast of US$0.38

LifeWorks: C$0.18 Q1 earnings per share forecast

Monday Gold: Q1 earnings per share forecast of US$0.24

Restaurant Brands International: Q1 earnings per share forecast of US$0.63

Russell Metals: C$1.24 Q1 earnings per share forecast

SSR Mining: Q1 earnings per share forecast of US$0.29

Thomson Reuters: Q1 earnings per share forecast of US$0.62

Waste Connections: Q1 earnings per share forecast of US$0.83

May 4

Altus Group: Q1 earnings per share forecast of C$0.27

Barrick Gold: Q1 earnings per share forecast of US$0.24

Canfor: Q1 earnings per share forecast of C$4.42

Centerra Gold: Q1 earnings per share forecast of US$0.15

Constellation Software: Q1 earnings per share forecast of US$11.54

Dundee Precious Metals: Q1 earnings per share forecast of US$0.21

Fortis: C$0.78 Q1 earnings per share forecast

Franco-Nevada: Q1 earnings per share forecast of US$0.96

GFL Environmental: C$0.02 Q1 loss per share forecast

Gildan Activewear: Q1 earnings per share forecast of US$0.51

Great-West Lifeco: C$0.86 Q1 earnings per share forecast

Green Thumb Industries: Q1 earnings per share forecast of US$0.06

Home Capital Group: C$1.17 Q1 earnings per share forecast

Loblaw Companies: Q1 earnings per share forecast of C$1.32

Maple Leaf Foods: C$0.09 Q1 earnings per share forecast

OpenText: Q3 earnings per share forecast of US$0.67

Spin Master: Q1 earnings per share forecast of US$0.17

TransAlta Renewables: C$0.20 Q1 earnings per share forecast

CORPORATE AGENDA

8:00 a.m. TMX Group: Q1 earnings conference call

08:30 MEG Energy: Q1 earnings conference call

09:00 Gibson Energy: Q1 earnings conference call

09:00 LifeWorks: 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 a.m. Altus Group: annual general meeting of shareholders

11:00 a.m. Colliers International Group: Q1 earnings conference call

12:00 Gibson Energy: annual general meeting of shareholders

12:00 MEG Energy: annual general meeting of shareholders

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

2:00 p.m. TMX Group: annual general meeting of shareholders

2:30 p.m. Canfor: annual general meeting of shareholders

4:00 p.m. Iamgold: annual general meeting of shareholders

4:00 p.m. New Gold: annual general meeting of shareholders

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

COUPON SECONDMENTS

No major coupon detachment expected today.

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

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