Expectations for stimulus from the European Central Bank and the U.S. Federal Reserve have triggered recent market gains but concerns remain high that poor growth will continue to hurt investor sentiment. As earnings season continues to rumble on, here are the stocks we're watching today:
*Bombardier Inc. reported its second quarter earnings on Thursday. The Montreal-based passenger airplane maker delivered on the 10-cent earnings per share expected by analysts while assuring investors it remains on course to debut its 100-plus seat commercial airliner in late 2013. Bombardier pulled in US$182 million, or 10 cents per share, in the second quarter, down from $211 million, or 12 cents per share, in the same year-ago period. However, the company added 146 new net plane orders in the recent quarter, but its mainstay regional aircraft business faces turbulence ahead.
*Cineplex Inc. will report its second quarter earnings today, likely showing a 56 per cent profit increase on higher revenues thanks to its premium priced offerings such as 3D films. Canada's largest motion picture exhibitor, with 134 theatres and 1,445 screens and a workforce of approximately 10,000 employees, also recently completed the acquisition of four AMC theatres. Cineplex's net income rose to C$21 million, or 34 cents per share, from $13.4 million, or 23 cents per share, in the second quarter of 2011.
*Open Text Corp., one of Canada's largest software companies stationed in Waterloo, Ont., saw its price target on shares cut from $62 to $60 by Versant Partners. That followed a similar move by analysts at BMO Capital Markets that cut their target price of the enterprise management software maker from $56 to $51. The vendor is reportedly struggling to integrate some of its recent acquisitions thus the neutral rating by analysts. Open Text will release its fourth quarter 2012 earnings today after market close.
*Tim Hortons Inc., the iconic coffee retail chain, reported its second quarter earnings on Thursday revealing strong earnings-per-share growth benefiting from a positive net income increase. Total revenues for the quarter jumped 11.8 per cent to $785.6 million compared to $702.8 million one year ago. Same-store sales growth of 1.8 per cent in Canada and 4.9 per cent in the U.S., as well as new restaurant developments, helped drive the impressive results. Moreover, the company's board of directors declared a dividend of 21 cents per common share payable to shareholders as of August 20. Make mine a double-double.
*Quebecor Inc., the Montreal-based cable TV and communications company with broadcasting and publishing properties that includes the Sun Media Group, saw its profits rise by 21 per cent in the second quarter largely due to growth in the company's telecommunications business. Net income in 2Q rose to $67 million, or $1.05 per share, from $55.2 million, or 85 cents per share, one year ago. Revenue in Quebecor's telecom segment rose to $651.8 million from $601.1 million.