Thursday’s markets were surprisingly strong or at least the DOW was, especially earlier in the day. The S&P 500 ended higher by just 0.1% and Toronto was down 0.1%.
It was disappointing to see Stantec down 11.0% after it released earnings. GAAP earnings per share were down by about 60% but that was mostly due to unusual one-time income taxes related to the tax changes in the U.S. Earnings were down in Q4 but this was mostly due to (hopefully) one-time cost over-runs. Adjusted earnings per share were down by 9% but this was mostly due to (hopefully) one-time cost over-runs. But I notice in the presentation the company shows normalized earnings per share (after adding back the project over runs) were UP 49%. Clearly the market was not buying that normalized story.
I believe Stantec will continue to do well over the years and that this dip is likely a buying opportunity. However, I would be cautious and not rush in. I may add modestly to my position tomorrow.
In better news, CRH Medical was up about 11%.