The Weekly Brief (As of September 4)
- Royal Bank of Canada (RY) reported solid earnings with an adjusted EPS of $3.84, beating the expectation of $3.32, driven by healthy revenue growth. The company’s chief risk officer mentioned that the company sets aside provisions for potential loan losses, which are expected to remain elevated for the next few quarters as trade tensions persist.
- CIBC (CM) reported the third-quarter profit of $2.10 billion, which amounted to an EPS of $2.16. The result is quite impressive considering it was up from $1.8 billion with an EPS $1.93 in the same period last year.
- Toronto Dominion Bank (TD) reported an adjusted EPS of $2.20, beating analyst expectations of $2.05, driven by strong performance across segments like personal and commercial banking, wealth management and insurance, but earnings were affected by anti-money-laundering changes.
- EQ Bank (EQB) share price fell sharply after another disappointing quarter. The company reported an adjusted EPS of $2.07, well below the estimate of $2.53, which concerns investors about the credit quality and the ability of the bank to hit its profit targets.
- Desjadins Global Asset Management has announced that it will take Guardian Capital (GCG.A) private after nearly a six-decade run on the TSX, in a C$1.67 billion all-cash deal, paying C$68 per share.
*Analysts of 5i Research responsible for this report do not have a financial or other interest in securities mentioned. The i2i Fund does not have a financial or other interest in securities mentioned.
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Join us at the MoneyShow on September 12–13! On September 12, Ryan Modesto will be discussing opportunities in small caps, and on September 13, Chris White will explore the unexpected yet common traits of long-term “compounder” stocks, sharing insights on how to identify companies that can build wealth over decades.
Investor Sentiment - Results and New Survey
Thank you to all those who participated in the previous Investor Sentiment Survey. We have published the results from the survey in a report in a link here.
Please note that the weightings and categorization of these results are still a work in progress, and the model(s) used to analyze the results may change over time as more data comes in.
Alongside the release of the results from the previous survey, we are also releasing the next survey, which can be found below. This survey shouldn't take more than 5 minutes and no personal details are required.
Let us know how you are feeling about markets and the economy by following the link below! We will let you know the results in a following market update.
Report Updates
We have posted report updates on Richelieu Hardware (RCH) and TMX Group Limited (X). RCH is a leading distributor of specialty hardware and related products, and X is a capital exchange facilitator, clearinghouse for equities, fixed income, and derivatives trading, as well as a data analytics solution provider. One company has demonstrated solid execution and strong business momentum, while the other has recently seen near-term operational challenges.
Read the latest updates by logging in here!