The Successful Investor Hotline – Friday, August 8, 2014

Article Excerpt

CANADIAN TIRE CORP., $108.49, Toronto symbol CTC.A, earned $169.9 million in the quarter ended June 28, 2014, up 9.7% from $154.9 million a year earlier. Earnings per share gained 11.0%, to $2.12 from $1.91, on fewer shares outstanding. That easily beat the consensus estimate of $2.02. Overall sales rose 4.8%, to $3.2 billion from $3.0 billion. Strong demand for spring-related goods, such as garden tools, auto supplies and bicycles, increased same-store sales by 2.8% at the 493 Canadian Tire outlets. Same-store sales rose 8.2% at the company’s 427 sporting goods stores, including Sport Chek and Sports Experts, partly due to strong demand for clothing related to the recent FIFA World Cup soccer tournament in Brazil. Same-store sales gained 3.2% at the 382-store Mark’s casual-clothing chain. The company is now upgrading its main Canadian Tire stores’ home improvement and sporting goods sections. That should increase its full-year earnings by around 5%, to $7.24 a share. The stock trades at a moderate 15.0 times that forecast. Canadian…