Top News Before the Bell Stocks to Watch

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Top News Before the Bell Stocks to Watch TOP NEWS • Barrick adj. profit jumps on higher prices, trims gold 2020 output Barrick Gold reported a nearly 55% rise in quarterly adjusted profit, benefiting from a surge in gold prices fueled by concerns over global economic growth. • Shopify posts surprise adjusted profit as lockdowns drive merchants online Shopify posted a surprise adjusted profit for the first quarter and beat revenue estimates as more users visited its platform after lockdowns led merchants to move their businesses online. • CVS Health first-quarter profit beats on COVID-19 stockpiling CVS Health posted first-quarter profit above Wall Street estimates, as its pharmacy benefits management business and its drugstores benefited from customers stockpiling medicines due to COVID-19 lockdowns. • AstraZeneca diabetes drug gets U.S. nod to treat heart failure AstraZeneca's diabetes drug Farxiga has become the first in its class to win U.S. approval as a treatment for heart failure, opening up a major new market opportunity outside of the medicine's established field. • China says tariffs should not be used as a weapon after U.S. threats China said tariffs should not be used as a weapon after U.S. President Donald Trump threatened to impose more of them in retaliation for China's handling of the novel coronavirus. BEFORE THE BELL Canada’s main stock index futures rose as oil prices jumped on hopes for a recovery in demand. U.S. stock index futures advanced, supported by easing of coronavirus-driven restrictions by many countries. Most European indexes gained on a jump in healthcare stocks. China shares ended higher as trading resumed after a week-long holiday. The U.S. dollar rose against a basket of major currencies, while gold prices eased. STOCKS TO WATCH Results • Barrick Gold Corp (ABX). The miner reported a nearly 55% rise in quarterly adjusted profit, benefiting from a surge in gold prices fueled by concerns over global economic growth. The miner trimmed its gold forecast for the year, as the industry braces for a heavy hit from the nationwide lockdown to slow the spread of the coronavirus. Larger rival Newmont warned on Tuesday of a financial impact in the second quarter. The company now expects gold production to range from 4.6 million ounces to 5 million ounces due to the recent development at Porgera gold mine, after the Papua New Guinea government declined a lease extension due to environmental damage and social unrest. Barrick's adjusted profit rose to $285 million, or 16 cents per share, in the first quarter ended March 31, from $184 million, or 11 cents per share, a year earlier. • Shopify Inc (SHOP). The e-commerce company posted a surprise adjusted profit for the first quarter and beat revenue estimates as more users visited its platform after lockdowns led merchants to move their businesses online. Gross merchandise volume (GMV), a metric used in the e-commerce sector to measure transaction volumes, surged 46% to $17.4 billion in the quarter, beating estimates of $16.58 billion. Shopify posted a net loss of $31.4 million, or 27 cents per share, for the quarter ended March 31, compared with $24.2 million, or 22 cents per share, a year earlier. Excluding items, it earned 19 cents per share, while analysts expected it post a loss of 18 cents. • Suncor Energy Inc (SU). The company deepened its spending cuts, suspended its share repurchase program and cut its quarterly dividend by 55%, hit by a historic plunge in oil prices caused by a feud between Saudi Arabia and Russia and the COVID-19 pandemic. Suncor cut its 2020 capital budget to a range of C$3.6 billion to C$4.0 billion, a C$400 million reduction at mid-point compared to the previous guidance and about 33% compared to the original plan. The company also suspended share repurchases and reduced its quarterly dividend to C$0.21 per common share from C$0.465 per common share. The company posted a loss of C$3.53 billion, or C$2.31 per share, in the first quarter ended March 31, compared with a profit of C$1.47 billion, or C$0.93 per share, a year earlier. Excluding one-off items, the company posted a loss of 20 Canadian cents per share, missing analysts' estimates of a loss of 17 Canadian cents. • Sun Life Financial Inc (SLF). Life insurers face a challenging year as rising unemployment from the coronavirus pandemic reduces group benefit and retirement plan enrollment, and market declines and credit deterioration weigh on asset-management earnings, Sun Life Financial's CEO said on Tuesday. "COVID-19 is an enormous health and economic and humanitarian shock," Chief Executive Dean Connor said in an interview after Canada's second-biggest life insurer reported first-quarter underlying profit that beat analyst estimates and rose from a year ago. Sun Life reported underlying net income of C$770 million, or C$1.31 per share, in the three months that ended on March 31, up from C$1.20 a year ago. Analysts had expected C$1.12. Reported net income fell to C$391 million, or 67 Canadian cents per share, from C$623 million, or C$1.04, a year ago, due to market declines driven by the COVID-19 outbreak, Connor said. In Other News • Imperial Oil Ltd (IMO). The company on Tuesday said 50 birds died after landing on tailings ponds near its Kearl Lake oilsands site in Alberta. Since April 26, there have been several days when more than 100 birds - mostly grebes and shorebirds - have landed on tailings ponds, a spokesman at the integrated energy company told Reuters. About 60 oiled birds have been collected, of which 50 have died, the spokesman said. Partially oiled birds are being rehabilitated, he added. ANALYSIS Expect a bumpy recovery? Exchanges may provide an upside As market volatility has eased after the mayhem of March, investors betting on a rocky economic recovery from the coronavirus crisis are buying shares of exchanges that are poised to profit if more turmoil ensues. ANALYSTS' RECOMMENDATION • Altus Group Ltd (Ontario) (AIF). TD Securities cuts price target to C$47 from C$50, to account for the potential impact of COVID- 19. • Finning International Inc (FTT). Canaccord Genuity raises price target to C$24 from C$21, saying the company did a very good job navigating a volatile first quarter. • George Weston Ltd (WN). CIBC raises price target to C$124 from C$122, seeing more progress in the company’s bakery cash flows. • Winpak Ltd (WPK). Scotiabank raises price target to C$53 from C$51, given the stronger U.S. dollar. ECONOMIC EVENTS No economic indicators are scheduled for release. COMPANIES REPORTING RESULTS May 6: ARC Resources Ltd (ARX). Expected Q1 loss of 1 Canadian cent per share Barrick Gold Corp (ABX). Expected Q1 earnings of 16 cents per share Boralex Inc (BLX). Expected Q1 earnings of 33 Canadian cents per share CI Financial Corp (CIX). Expected Q1 earnings of 60 Canadian cents per share Crescent Point Energy Corp (CPG). Expected Q1 earnings of 7 Canadian cents per share Dundee Precious Metals Inc (DPM). Expected Q1 earnings of 15 cents per share Fortis Inc (FTS). Expected Q1 earnings of 73 Canadian cents per share Franco-Nevada Corp (FNV). Expected Q1 earnings of 56 cents per share Great-West Lifeco Inc (GWO). Expected Q1 earnings of 59 Canadian cents per share Kinaxis Inc (KXS). Expected Q1 earnings of 29 cents per share Kirkland Lake Gold Ltd (KL). Expected Q1 earnings of 74 cents per share Manulife Financial Corp (MFC). Expected Q1 earnings of 59 Canadian cents per share Norbord Inc (OSB). Expected Q1 earnings of 20 cents per share Nutrien Ltd (NTR). Expected Q1 loss of 6 cents per share Pan American Silver Corp (PAAS). Expected Q1 earnings of 13 cents per share Parkland Fuel Corp (PKI). Expected Q1 loss of 2 Canadian cents per share Real Matters Inc (REAL). Expected Q2 earnings of 8 cents per share Spin Master Corp (TOY). Expected Q1 loss of 14 cents per share Stantec Inc (STN). Expected Q1 earnings of 45 Canadian cents per share Torex Gold Resources Inc (TXG). Expected Q1 earnings of 11 cents per share Tourmaline Oil Corp (TOU). Expected Q1 earnings of 13 Canadian cents per share Waste Connections Inc (WCN). Expected Q1 earnings of 66 cents per share Wheaton Precious Metals Corp (WPM). Expected Q1 earnings of 21 cents per share WSP Global Inc (WSP). Expected Q1 earnings of 63 Canadian cents per share May 7: Algonquin Power & Utilities Corp (AQN). Expected Q1 earnings of 22 cents per share Altus Group Ltd (Ontario) (AIF). Expected Q1 earnings of 23 Canadian cents per share Badger Daylighting Ltd (BAD). Expected Q1 earnings of 18 Canadian cents per share Bausch Health Companies Inc (BHC). Expected Q1 earnings of 87 cents per share BCE Inc (BCE). Expected Q1 earnings of 76 Canadian cents per share Bombardier Inc (BBDb). Expected Q1 loss of 7 cents per share Canadian Natural Resources Ltd (CNQ). Expected Q1 loss of 1 Canadian cent per share Canadian Tire Corporation Ltd (CTCa). Expected Q1 earnings of 51 Canadian cents per share Cargojet Inc (CJT). Expected Q1 earnings of 23 Canadian cents per share Cascades Inc (CAS). Expected Q1 earnings of 31 Canadian cents per share Constellation Software Inc (CSU). Expected Q1 earnings of $7.41 per share Enbridge Inc (ENB). Expected Q1 earnings of 74 Canadian cents per share Ero Copper Corp (ERO). Expected Q1 earnings of 20 cents per share iA Financial Corporation Inc (IAG). Expected Q1 earnings of C$1.34 per share Inter Pipeline Ltd (IPL).
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