oil and gas
Toronto-Dominion Bank has expanded its position in the U.S., with more branches there than in Canada. It continues to gain from an improving U.S. economy, while the weak Canadian dollar enhances earnings from that market. TD’s U.S. business also helps to offset higher loan losses because of the slowdown in Canada’s oil industry....
Fastenal Company, $46.12, symbol FAST on Nasdaq (Shares outstanding: 288.9 million; Market cap: $13.3 billion; www.fastenal.com), is a leading wholesale distributor of industrial and construction supplies. It has 2,630 wholesale and retail stores in the U.S., Canada, Mexico, Central America, Asia, Europe and South Africa....
EXTENDICARE INC., $8.69, symbol EXE on Toronto, owns 64 senior-care facilities that can house 8,464 residents—both long- and short-term. It manages another 54 residences that are home to 6,426 seniors. Extendicare also operates 47 ParaMed Home Health Care branches in six provinces. ParaMed’s 10,900 staff members provide nursing care and other forms of assistance to clients who remain in their own homes. In the three months ended March 31, 2016, the company’s revenue rose 29.8%, to $284.4 million from $202.2 million a year earlier. Cash flow jumped 72.5%, to $12.2 million, or $0.14 a share, from $7.1 million, or $0.08....
HEWLETT-PACKARD ENTERPRISE CO., $18.25, New York symbol HPE, sells computing services and products, such as servers and analytics software, to businesses and governments. The stock jumped over 15% this week after the company announced that it would spin off its Enterprise Services business and merge it with Computer Sciences Corp. (New York symbol CSC). The Enterprise Services operations, which supply 36% of HP Enterprise’s total revenue, help corporate clients manage their data centres and computer networks....
BANK OF MONTREAL, $83.44, Toronto symbol BMO, gained 1% this week after announcing it will raise its dividend. The bank also said it’s setting aside more funds to cover potential bad loans to Canadian oil and gas firms; and with more of its customers banking online, it will cut 4% of its workforce. In its fiscal 2016 second quarter, which ended April 30, 2016, Bank of Montreal earned $1.152 billion. That’s a gain of 0.5% over $1.146 billion a year earlier. Due to fewer shares outstanding, earnings per share rose 1.2%, to $1.73 from $1.71. These figures exclude severance payments and other unusual items. On that basis, the latest earnings missed the consensus estimate of $1.75 a share....
Baker Hughes will use a $3.5 billion breakup fee to pay down debt and buy back shares following the collapse of a takeover bid by Halliburton
AltaGas Ltd., $30.89, symbol ALA on Toronto (Shares outstanding: 147.3 million; Market cap: $4.5 billion; www.altagas.ca), processes, transports, stores and markets natural gas for producers. The company also operates natural gas utilities, and it is a power generator, with gas-fired, coal-fired, wind, biomass and hydroelectric plants. Acquisitions and $1.7 billion in new projects increased AltaGas’s revenue from $1.3 billion in 2011 to $2.4 billion in 2014—an 88% jump. Revenue then fell to $2.2 billion in 2015, due to lower selling prices for natural gas and weaker power prices in Alberta. Cash flow per share gained 42.5%, from $2.61 in 2011 to $3.72 in 2014; it declined to $3.41 in 2015....
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AIMIA INC., $7.45, symbol AIM on Toronto, owns and operates Aeroplan, Canada’s largest loyalty program. The plan has over 5 million members who collect Aeroplan miles from participating companies. They can exchange those miles for flights, but also car rentals, hotel rooms and merchandise. In the U.K., Aimia owns Nectar, that country’s biggest loyalty program. The company also has interests in Air Miles Middle East and Club Premier—the leading loyalty program in Mexico. In the three months ended March 31, 2016, the company’s revenue fell 13.6%, to $570.1 million from $660.1 million a year earlier. The decline was the result of the lower contribution from Nectar as well as the shutdown of the Nectar Italia program. Excluding one-time items, overall earnings per share fell 13.3%, to $0.13 from $0.15....