MORNING NEWS CALL - Thomson Reutersshare.thomsonreuters.com/assets/newsletters/morning_News... ·...
4
MORNING NEWS CALL TOP NEWS • Canada's Husky Energy profit surges, cuts output forecast Canadian oil and gas producer Husky Energy reported a jump in quarterly profit, but lowered its 2018 output forecast, saying it would temporarily cut heavy oil production due to weakening prices of the commodity. • Precision Drilling sees smaller loss, ups 2018 capex Canadian rig contractor Precision Drilling reported a smaller-than-expected loss as its U.S. clients deployed more of the company's rigs to take advantage of rising oil prices. • GM quarterly profit falls but beats Wall St estimates General Motors reported a lower first-quarter net profit as it began the changeover to a redesigned family of high-margin pickup trucks that resulted in lower production, but came in above Wall Street expectations. • Results soothe nerves over scandal-hit Facebook Shares of Facebook rose as much as 7 percent in premarket trading after another blockbuster set of quarterly results calmed stock investors' nerves about the fallout of the Cambridge Analytica privacy scandal. • PepsiCo tops estimates on growth in developing markets PepsiCo's quarterly revenue and profit beat Wall Street's targets day as it sold more beverages and snacks in developing markets and posted a smaller sales decline in its North America beverages unit. BEFORE THE BELL Stock futures pointed to a higher opening for Canada's main stock index as oil prices gained on concerns over renewed U.S. sanc- tions on Iran and falling Venezuelan output. U.S. stock futures were higher as investors assessed a raft of corporate earnings, in- cluding strong results from Facebook and Qualcomm. European stocks edged higher on recovery among industrials and encourag- ing results, while most Asian equities rose, buoyed by tech shares. The euro edged up as traders prepared for a European Central Bank meeting. A soft U.S. dollar supported gold prices. STOCKS TO WATCH Results • Husky Energy Inc (HSE). The Canadian oil and gas producer reported a jump in quarterly profit, but lowered its 2018 output fore- cast, saying it would temporarily cut heavy oil production due to weakening prices of the commodity. Average operating costs of pro- duction was C$13.33 per boe in the quarter, compared with C$13.75 per boe, a year earlier. Net earnings rose to C$248 million ($193.2 million), or 89 Canadian cents per share, in the three months ended March 31, from C$71 million, or 66 Canadian cents per share, a year earlier. • Precision Drilling Corp (PD). Canadian rig contractor reported a smaller quarterly loss, helped by a 36 percent rise in the number of active rigs in the United States. Revenue from rig utilization per day was up marginally to $20,603 in the U.S., while it rose 3.8 per- cent to C$22,209 in Canada. Net loss narrowed to C$18.1 million, or 6 Canadian cents per share from net loss of C$22.6 million, or 8 Canadian cents per share, a year earlier. Revenue rose to C$401 million from C$368.7 million. REUTERS Canada Edition Thursday, April 26, 2018
Transcript of MORNING NEWS CALL - Thomson Reutersshare.thomsonreuters.com/assets/newsletters/morning_News... ·...
MORNING NEWS CALL
TOP NEWS
• Canada's Husky Energy profit surges, cuts output forecast
Canadian oil and gas producer Husky Energy reported a jump in quarterly profit, but lowered its 2018 output forecast, saying it would
temporarily cut heavy oil production due to weakening prices of the commodity.
• Precision Drilling sees smaller loss, ups 2018 capex
Canadian rig contractor Precision Drilling reported a smaller-than-expected loss as its U.S. clients deployed more of the company's
rigs to take advantage of rising oil prices.
• GM quarterly profit falls but beats Wall St estimates
General Motors reported a lower first-quarter net profit as it began the changeover to a redesigned family of high-margin pickup trucks
that resulted in lower production, but came in above Wall Street expectations.
• Results soothe nerves over scandal-hit Facebook
Shares of Facebook rose as much as 7 percent in premarket trading after another blockbuster set of quarterly results calmed stock
investors' nerves about the fallout of the Cambridge Analytica privacy scandal.
• PepsiCo tops estimates on growth in developing markets
PepsiCo's quarterly revenue and profit beat Wall Street's targets day as it sold more beverages and snacks in developing markets
and posted a smaller sales decline in its North America beverages unit.
BEFORE THE BELL
Stock futures pointed to a higher opening for Canada's main stock index as oil prices gained on concerns over renewed U.S. sanc-
tions on Iran and falling Venezuelan output. U.S. stock futures were higher as investors assessed a raft of corporate earnings, in-
cluding strong results from Facebook and Qualcomm. European stocks edged higher on recovery among industrials and encourag-
ing results, while most Asian equities rose, buoyed by tech shares. The euro edged up as traders prepared for a European Central
Bank meeting. A soft U.S. dollar supported gold prices.
STOCKS TO WATCH
Results
• Husky Energy Inc (HSE). The Canadian oil and gas producer reported a jump in quarterly profit, but lowered its 2018 output fore-
cast, saying it would temporarily cut heavy oil production due to weakening prices of the commodity. Average operating costs of pro-
duction was C$13.33 per boe in the quarter, compared with C$13.75 per boe, a year earlier. Net earnings rose to C$248 million
($193.2 million), or 89 Canadian cents per share, in the three months ended March 31, from C$71 million, or 66 Canadian cents per
share, a year earlier.
• Precision Drilling Corp (PD). Canadian rig contractor reported a smaller quarterly loss, helped by a 36 percent rise in the number
of active rigs in the United States. Revenue from rig utilization per day was up marginally to $20,603 in the U.S., while it rose 3.8 per-
cent to C$22,209 in Canada. Net loss narrowed to C$18.1 million, or 6 Canadian cents per share from net loss of C$22.6 million, or 8
Canadian cents per share, a year earlier. Revenue rose to C$401 million from C$368.7 million.
REUTERS Canada Edition Thursday, April 26, 2018
2
MORNING NEWS CALL - CANADIAN EDITION April 26, 2018
In other news
• WestJet Airlines Ltd (WJA). Pilots at WestJet Airlines, represented by the Air Line Pilots Association, started voting on a strike
authorization on Wednesday saying an agreement with WestJet management is yet be reached. The vote, which was triggered after
more than six months of negotiations, will remain open for 15 days, ALPA said. The statutory 60-day federal conciliation period ends
on April 27. The pilots are permitted to strike after a 21-day cooling-off period that begins after that date, right before a busy summer
travel season, the union said.
ANALYSIS
Skinny and sweet: U.S. refiner earnings depend on the oil diet
Smaller independent refiners with less complex facilities are surging in the stock market of late, as investors expect strong earnings
growth thanks to the recent fall in price of their primary cost - light, sweet crude oil coming out of West Texas. Over the last 20 years,
the nation's biggest refiners spent billions building units capable of turning heavy, sour crude into gasoline, diesel fuel and other prod-
ucts.
ANALYSTS' RECOMMENDATION
• TFI International Inc (TFII). CIBC raises target price to C$39 from C$36, after the company reported better-than-expected first-
quarter results.
ECONOMIC EVENTS
No economic indicators are scheduled for release.
COMPANIES REPORTING RESULTS
Apr 26:
Agnico Eagle Mines Ltd (AEM). Expected Q1 earnings of 17 cents per share
AltaGas Ltd (ALA). Expected Q1 earnings of 38 Canadian cents per share
Canadian Utilities Ltd (CU). Expected Q1 earnings of 76 Canadian cents per share
Eldorado Gold Corp (ELD). Expected Q1 earnings of 1 cent per share
First Quantum Minerals Ltd (FM). Expected Q1 earnings of 14 cents per share
Husky Energy Inc (HSE). Expected Q1 earnings of 22 Canadian cents per share
Precision Drilling Corp (PD). Expected Q1 loss of 7 Canadian cents per share
Siyata Mobile Inc (SIM). Expected Q4 loss of 1 Canadian cent per share
Vermilion Energy Inc (VET). Expected Q1 earnings of 19 Canadian cents per share
Apr 27:
Cameco Corp (CCO). Expected Q1 loss of 1 Canadian cent per share
Celestica Inc (CLS). Expected Q1 earnings of 24 cents per share
Imperial Oil Ltd (IMO). Expected Q1 earnings of 44 Canadian cents per share
TransCanada Corp (TRP). Expected Q1 earnings of 84 Canadian cents per share
CORPORATE EVENTS (All timings in U.S. Eastern Time)
0800 Lundin Mining Corp (LUN). Q1 earnings conference call
0800 Toromont Industries Ltd (TIH). Q1 earnings conference call
0900 New Gold Inc (NGD). Q1 earnings conference call
0930 Fairfax Financial Holdings Ltd (FFH). Annual Shareholders Meeting
1000 Constellation Software Inc (CSU). Annual Shareholders Meeting
1000 Enercare Inc (ECI). Annual Shareholders Meeting
1000 Husky Energy Inc (HSE). Q1 earnings conference call
3
MORNING NEWS CALL - CANADIAN EDITION April 26, 2018
1000 Mitel Networks Corp (MITL). Annual Shareholders Meeting
1000 Toromont Industries Ltd (TIH). Annual Shareholders Meeting
1030 Canfor Corp (CFP). Q1 earnings conference call
1030 Canfor Corp (CFX). Q1 earnings conference call
1100 AltaGas Ltd (ALA). Q1 earnings conference call
1130 West Fraser Timber Co Ltd (WFT). Q1 earnings conference call
1200 Methanex Corp (MX). Q1 earnings conference call
1200 Mullen Group Ltd (MTL). Q1 earnings conference call
1230 Husky Energy Inc (HSE). Annual Shareholders Meeting
1300 Goldcorp Inc (G). Q1 earnings conference call
1330 Methanex Corp (MX). Annual Shareholders Meeting
1400 Precision Drilling Corp (PD). Q1 earnings conference call
1700 Vermilion Energy Inc (VET). Annual Shareholders Meeting
EXDIVIDENDS
There are no major exdivs for the day.
(All analysts' estimates are according to Thomson Reuters I/B/E/S)
4
MORNING NEWS CALL - CANADIAN EDITION April 26, 2018
PICTURE OF THE DAY
Children release butterflies during an event to wish for a successful inter-Korean summit, near the demilitarized zone separating the two Koreas in Paju, South Korea, April 25. REUTERS/Kim Hong-Ji
(Compiled by Erum Khaled and Yoganand KN in Bengaluru) To subscribe for The Morning Newscall newsletter click here To un-subscribe for this newsletter click here For questions or comments about this report, contact: [email protected] To launch a Co-branded Morning News Call from your firm, contact: [email protected] For more information about our products: https://www.thomsonreuters.com/en/products-services.html Or send us a sales enquiry at: https://www.thomsonreuters.com/en/contact-us.html
NEWS ACCESS MADE EASY Reuters Top News page displays a range of market and sector-specific subjects including: US, Europe and Asian companies, fixed income, credit, the global economy, emerging markets, corporate finance and industry sectors. To access Reuters Top News -- Thomson ONE: Click News tab, Select Front Page from top right, Click Top News. © 2018 Thomson Reuters. All rights reserved. This content is the intellectual property of Thomson Reuters and its affiliates. Any copying, distribution or redistribution of this content is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. Thom-son Reuters and its logo are registered trademarks or trademarks of the Thom-son Reuters group of companies around the world.
