August 7, 2019

On Wednesday, the S&P 500 was down most of the day but ended the day up 0.1%. Toronto was up 0.7%.

Restaurant Brands was strong with a 3.6% gain in Toronto and 3.4% in New York.

Rate reset shares were lower due to the declining 5 year Canada bond yield rate.

CRH Medical was up 3.8%.

After the close, Stantec reported earnings that were lower than expected. They blamed it on higher than anticipated admin costs saying that planned staff reductions in that area were delayed. But it was not clear to me why that made the admin costs (as a percentage of sales) higher than last year as opposed to simply higher than budgeted. Analysts may be upset that the company did not achieve its planned cost reductions. While their adjusted earnings per share at 50 cents would still amount to $2.00 for a P/E of 15, which is not bad, and while revenues were up, the market will likely “punish” the stock tomorrow for the disappointment.

Also after the close, Costco reported yet another good month of comparable same-store sales – up 5.1% in July. Slightly lower than recent results but still very good.

I believe Boston Pizza Royalties Income Fund reports tomorrow. I have said a number of times that I am worried that they might have to cut the distribution unless same-store sales grow.