According to Thomson Reuters StarMine estimates, Canadian companies are expected to report strong first quarter 2014 earnings which are scheduled to be released starting next week. Analysts’ expect earnings from companies on Canada’s benchmark S&P/TSX composite index to climb 6.1% in the first quarter. Energy companies meanwhile are forecasted to register robust earnings of 22% benefitting from a ramp-up in production, improved prices for Canadian crude relative to global benchmarks and a rally in natural gas prices. Sectors such as healthcare and consumer discretionary are also expected to show strong growth. By contrast, earnings from basic materials companies, which include gold and base metal miners, are seen slipping 37% in the first quarter on the back of declining commodity prices. Moreover, the harsh and long winter is also expected to have an impact on first-quarter results at many companies.
Ubika Research has shortlisted 12 stocks across sectors which are scheduled to report strong first quarter results for fiscal 2014. Based on the consensus estimates of analysts polled by Bloomberg, these companies are estimated to report strong growth in sales and EPS with strong operating margins of over 10% during the quarter. Moreover, cash flow per share (CF/S) for these stocks are estimated to grow significantly during the first quarter of 2014. We note that during the past three months, the majority of these stocks have accumulated gains with daily average trading volume in excess of 100,000 shares.
|
Company Name |
Exchange |
Ticker |
Industry |
Market Cap |
Last Price |
3-Months Average Volume |
3-Months Price Return |
Sales Growth |
EPS Growth |
Operating Margins |
CF/Share Growth |
Return on Equity |
|
Dominion Diamond Corp |
TSX |
DDC |
Mining |
1.2 |
13.78 |
220,319 |
-16.4% |
16.6% |
127.8% |
13.1% |
53.8% |
44.3% |
|
Labrador Iron Ore Royalty Corp |
TSX |
LIF |
Mining |
2.0 |
31.02 |
186,429 |
-7.4% |
17.3% |
23.5% |
76.0% |
21.6% |
26.4% |
|
West Fraser Timber Co Ltd |
TSX |
WFT |
Mining |
4.3 |
47.87 |
383,201 |
-18.6% |
10.8% |
11.4% |
16.2% |
37.5% |
20.3% |
|
MacDonald Dettwiler & Associates Ltd |
TSX |
MDA |
Consumer Services |
3.1 |
87.11 |
106,905 |
11.1% |
10.5% |
14.7% |
14.6% |
77.0% |
19.8% |
|
Black Diamond Group Ltd |
TSX |
BDI |
Consumer Services |
1.5 |
35.90 |
139,731 |
23.8% |
21.1% |
44.1% |
28.1% |
27.1% |
14.4% |
|
Canadian Energy Services & Technology Corp |
TSX |
CEU |
Energy |
2.1 |
31.77 |
257,423 |
39.8% |
25.9% |
65.7% |
14.0% |
454.6% |
12.9% |
|
International Forest Products Ltd |
TSX |
IFP/A |
Basic Materials |
1.1 |
15.78 |
460,490 |
1.7% |
27.1% |
120.5% |
10.5% |
94.0% |
9.5% |
|
Precision Drilling Corp |
TSX |
PD |
Energy |
4.2 |
14.22 |
2,477,846 |
42.2% |
15.6% |
39.7% |
18.5% |
49.1% |
8.4% |
|
Pason Systems Inc |
TSX |
PSI |
Energy |
2.4 |
29.78 |
163,061 |
22.0% |
13.8%% |
88.9% |
37.5% |
234.8% |
6.4% |
|
Parex Resources Inc |
TSX |
PXT |
Energy |
1.2 |
10.71 |
576,486 |
47.9% |
13.9% |
256.4% |
16.6% |
29.5% |
2.7% |
|
Enerplus Corp |
TSX |
ERF |
Energy |
4.9 |
24.21 |
979,710 |
18.2% |
29.3% |
180.0% |
18.4% |
18.3% |
2.5% |
|
Algonquin Power & Utilities Corp |
TSX |
AQN |
Utilities |
1.6 |
7.74 |
599,426 |
5.4% |
19.1% |
19.6% |
17.4% |
93.1% |
2.3% |
Source: Bloomberg
Company Description:
Dominion Diamond Corp (TSX: DDC)
Dominion Diamond Corporation mines and markets rough diamonds. The company mines for rough diamonds in the Canada’s Northwest Territories. Dominion also provides the sorting and selling of rough diamonds in Canada, Belgium and India.
Labrador Iron Ore Royalty Corp (TSX: LIF)
Labrador Iron Ore Royalty Corp is an unincorporated open-ended trust. The company, through its subsidiaries, holds an overriding royalty on all iron ore products produced, sold, delivered, and shipped by Iron Ore Company of Canada.
West Fraser Timber Co Ltd (TSX: WFT)
West Fraser Timber Co. Ltd. produces dimension lumber and related wood products, fiberboard, pulp, linerboard, kraft paper, and newsprint. The company has operations in British Columbia, Alberta and in the southern United States.
MacDonald Dettwiler & Associates Ltd (TSX: MDA)
MacDonald, Dettwiler and Associates Ltd. provides essential information from anywhere in the world for decision making in the workplace. The company is active in data collection and information extraction and distribution. MacDonald generates products and delivers them via private networks, Internet, wireless networks, and digital media, or by traditional hardcopy methods.
Black Diamond Group Ltd (TSX: BDI)
Black Diamond Group Ltd. rents modular structures for use as workforce accommodations and temporary work space.The company provides temporary workspace for urban and industrial customers, the oilfield industry, and customers who work in remote areas.
Canadian Energy Services & Technology Corp (TSX: CEU)
Canadian Energy Services & Technology Corporation, through subsidiaries, designs and delivers drilling fluid systems used to drill oil and natural gas wells.
International Forest Products Ltd (TSX: IFP/A)
International Forest Products Limited (Interfor) harvests timber and manufactures and markets lumber products, logs, and wood chips. The company has logging operations and sawmills in Western Canada. Interfor products are marketed worldwide.
Precision Drilling Corp (TSX: PD)
Precision Drilling Corporation is an integrated oilfield drilling and energy service company providing services to the oil and gas industry. The company provides oilfield rentals, well services, catering services, and drilling services through its several business units.
Pason Systems Inc (TSX: PSI)
Pason Systems Inc. provides rental oilfield instrumentation systems that are designed and manufactured for use on land-based drilling and service rigs. The company offers both wellsite rental services and Internet data management services.
Parex Resources Inc (TSX: PXT)
Parex Resources Inc. is an oil and gas exploration and production company. The company owns interests in Colombia and Trinidad & Tobago.
Enerplus Corp (TSX: ERF)
Enerplus Corp. is an oil and gas exploration and production company that owns a large, diversified portfolio of income generating crude oil and natural gas properties. The company invests in mature crude oil and natural gas producing properties located primarily in western Canada with predictable production profiles.
Algonquin Power & Utilities Corp (TSX: AQN)
Algonquin Power & Utilities Corp. owns and has interests in a diverse portfolio of renewable power generation and sustainable infrastructure assets across North America. The company’s interests include renewable energy facilities, thermal energy facilities, and water distribution and waste-water facilities.
