June 7, 2018

Thursday’s action saw the SP&P 500 finish down 0.1% and Toronto was about unchanged with a 0.05% gain.

As expected, Canadian Western Bank released a strong earnings report for its Q2. Adjusted earnings were up about 19% year over year. Basically all of the numbers were improved year over year. Compared to Q1 earnings were down slightly but that was due to an usual gain last quarter.

The stock was initially up about 6% then settled back a bit before climbing through the whole afternoon to close up 8.5%. This steady gain in the afternoon hopefully bodes well for a bit more tomorrow.

The fact that the results were good should have been no surprise (although it was never guaranteed since CWB could have had some company-specific issues) as the Western economy has continued to improve after the recession bottomed around October 2016 and CWB had also acquired additional loan business in Ontario. Presumably the results were even better than analysts expected. (Which they universally, and bizarrely and illogically, refer to as the company beating expectations rather than their own forecasts trailing reality.)

Costco was up 2.5% after reporting strong same-store sales figures for May.

Dollarama was down 6.7% after its growth in the latest quarter was less than analysts expected.

Couche-Tard was down 3.6%. I am looking forward to seeing its results for the quarter and year ended April 30 but those results will not be released until around July 12.


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