Suncor Energy is opening its spigots to its shareholders, as rising oil prices boost cash flow. Last night, the company announced that it will double its quarterly dividend and increase its share buyback program. This news was announced alongside quarterly results that showed funds from operations increased more than twice year-over-year, reaching $2.64 billion in third quarter. Suncor also stated that it is developing an outlook for next years based on US$70 West Texas Intermediate crude oil. This raises the question: what else investors can look forward too if the recent predictions about oil reaching US$100 per barrel come true? This will be addressed along with what Suncor’s peers might have to offer as oil prices rise. We’ll also mention that Crescent Point Energy and Whitecap Resources both reported higher third-quarter funds flows today.
BANK OF CANADA AFTERSHOCKS
Is the central bank going to be forced to raise the cost of borrowing as soon as possible? After Tiff Macklem yesterday indicated a six month window for the first move, it is now time to answer that big question. Markets are betting that the Bank of Canada will move sooner than expected. One model suggests the first hike will occur by January. This morning, we have top-notch insight on what’s next and when it will happen. We will be joined by Derek Holt, Scotia economist (who boldly called for eight hikes before the end of 2023), and Frances Donald, Manulife, an hour later.
WHY JOE NATALE DOESN’T DESERVE ALL THE FLAK FROM EDWARD ROGERS
In Mr. Rogers’ affidavit, filed with the B.C. The PowerPoint presentation he gave on Sept. 22 to support his argument that Joe Nate should be removed from his position as Rogers Communications’ chief executive was hidden deep in Mr. Rogers’ affidavit. These slides aren’t the whole story about why the telecom operator has been behind its peers over the past couple of years. Paul Bagnell’s analysis is available at BNNBloomberg.ca.
SHOPIFY LANDS WITH a THUD
Canada’s tech darling has narrowly missed its profit expectations. Shopify’s third quarter adjusted earnings per share were US$0.81 Analysts expected US$1.13. Although revenue was up 46 percent year-over-year it was still light relative to expectations. Pre-market trading has put pressure on the stock. Shopify stated that its operating expenses would rise in the quarter, and warned that e-commerce has returned back to a more normalized rate of growth.
A SERIES OF OTHER IMPORTANT STORIES
Bombardier achieved a free cash flow of US$100 millions in its latest quarter, as opposed to US$647m it lost a year ago. Adjusted EBITDA soared 69% amid high confidence in business jet industry. The worst of COVID-19 seems to be behind them. Paige will be able to provide all details about this remarkable turnaround story, which has seen Bombardier rise to the top of TSX’s leaders board with a gain of nearly 340 percent for the year.
Ford shares surge in pre-market trades after the automaker raised its full year profit forecast and stated it would reinstate a dividend if it reports significant sequential growth in revenue and profit amid “significant increases” in semiconductor availability.
Like Canfor, West Fraser Timber experienced a sharp sequential erosion of profitability after yesterday’s close bell. However, it was still higher than the average estimate. The lumber division’s operating earnings fell to US$52million from USS$955million in the previous quarter, as the commodity was a prime example of transitory inflation.
D2L confirmed terms of its initial public offer, but it is not what the Toronto-based online educational platform was hoping for. The shares have been listed at $17.00 each. The company previously stated that it was targeting $19.00 to $121.00 per share.
Toronto-Dominion Bank today announced a management reorganization. This was triggered by Teri Currie’s retirement as the head of TD Canada personal banking. Michael Rhodes, Head of Innovation, will assume that role. There’s also a change of guard at the top U.S. retail banking operations.
EVENTS/RELEASES NOT AVAILABLE
Notable data: U.S. Initial Jobless Claims and GDP
Notable earnings include: Shopify. Bombardier. Crescent Point Energy. Whitecap Resources. Yamana Gold. Yamana Gold. Aecon Group. Royal Dutch Shell. Amazon.com. Apple, Newmont. Merck. Caterpillar. Mastercard. Molson Coors Beverages. Starbucks. U.S. Steel.
7:45: European Central Bank issues interest rate decision
10:30: Special meeting of Inter Pipeline to approve Brookfield deal
11:00: Alberta embargoed briefing about legislative amendments to assist municipalities in collecting unpaid taxes from oil-and gas properties (embargoed till legislation is tabled).
13:00: Mark Zuckerberg keynote at Facebook Connect conference