Posted by JM on August 20, 2021
Earnings are in!
As expected, Q2 was a good quarter for the stocks on ‘The List’ with twenty two of our twenty-seven stocks exceeding expectations.
BIP-N was the big winner due to strong organic growth, the contribution from new investments and the recognition of gains on the sale of their Canadian district energy business and smart meter portfolio.
TFII-T gets honorable mention with a 50% beat on estimates.
On the losing side Enghouse Systems Limited (ENGH-T) missed analyst expectations by ~18% on reduced revenue. The shortfall can mainly be attributed to a decrease in licensing revenue from their Vidyo product. Video conferencing solutions like Vidyo saw record use during the early stages of COVID and are starting to taper off as business gets back to normal and more in-person communication. Nonetheless, ENGH-T is one company on ‘The List’ we will pay extra attention to in Q3.
DOL-T, CNR-T, FTS-T, MRU-T were all minor misses; some due to negative foreign exchange impacts while others were returning to pre COVID earnings after seeing an increase during COVID due to their business model.
As part of our process, we monitor earnings releases to make sure our good dividend growers are continuing to grow their earnings and that management continues to provide positive guidance going forward.
Here is ‘The List’ sorted by reporting date complete with the market’s consensus estimates and actual reported results.
| SYMBOL | COMPANY | DATE | ESTIMATE | RESULT |
|---|---|---|---|---|
| RY-T | Royal Bank of Canada | 27-May | $2.49 | $2.79 |
| TD-T | TD Bank | 27-May | $1.76 | $2.04 |
| BNS-T | Bank of Nova Scotia | 1-Jun | $1.76 | $1.90 |
| DOL-T | Dollarama Inc. | 9-Jun | $0.38 | $0.37 |
| ENGH-T | Enghouse Systems Limited | 10-Jun | $0.45 | $0.37 |
| ATD-B-T | Alimentation Couche-Tard Inc. | 29-Jun | $0.42 | $0.52 |
| CNR-T | Canadian National Railway | 20-Jul | $1.50 | $1.49 |
| TFII-T | TFI International | 26-Jul | $0.96 | $1.44 |
| IFC-T | Intact Financial | 27-Jul | $2.42 | $3.26 |
| TIH-T | Toromont Industries | 28-Jul | $0.98 | $1.02 |
| EQB-T | Equitable Group Inc | 28-Jul | $3.81 | $4.05 |
| CU-T | Canadian Utilities Limited | 29-Jul | $0.39 | $0.43 |
| FTS-T | Fortis | 29-Jul | $0.59 | $0.55 |
| TRP-T | Trans Canada | 29-Jul | $0.96 | $1.07 |
| T-T | Telus | 29-Jul | $0.26 | $0.26 |
| ENB-T | Enbridge Inc. | 30-Jul | $0.57 | $0.67 |
| SJ-T | Stella-Jones Inc. | 3-Aug | $1.47 | $1.76 |
| WCN-N | Waste Connections | 4-Aug | $0.77 | $0.81 |
| CCL-B-T | CCL Industries | 5-Aug | $0.77 | $0.89 |
| BIP-N | Brookfield Infrastructure Partners | 5-Aug | $0.11 | $0.61 |
| BCE-T | Bell Canada | 5-Aug | $0.78 | $0.83 |
| MGA-N | Magna | 6-Aug | $1.39 | $1.40 |
| EMA-T | Emera | 10-Aug | $0.54 | $0.54 |
| MRU-T | Metro | 10-Aug | $1.13 | $1.06 |
| FNV-N | Franco Nevada | 11-Aug | $0.92 | $0.96 |
| AQN-N | Algonquin Power & Utilities | 11-Aug | $0.13 | $0.15 |
| CTC-A-T | Canadian Tire | 12-Aug | $2.88 | $3.72 |
