A survey of North American equities heading in both directions
On the rise
National Bank of Canada (NA-T) was up 0.6 per cent after announcing it has signed a deal to buy PGM Global Holdings Inc., the parent company of PGM Global Inc. which is a Montreal-based provider of institutional trading services.
Terms of the agreement were not immediately available, though National Bank said the value of the deal would not have a material impact on its financial position.
The bank says PGM Global will complement the services offered by National Bank Independent Network, which offers custody, trade execution, and brokerage services to independent wealth management firms.
National Bank also says PGM Global’s dual registration with both the Canadian Investment Regulatory Organization and the Financial Industry Regulatory Authority in the U.S. will improve its ability to cater to expanding client needs.
PGM Global chief executive Patrick Belland says the company is confident the deal will create significant advantages for the clients it serves.
The deal is expected to close in late spring this year, subject to closing conditions and regulatory approvals.
Okotoks, Alta.-based Mullen Group Ltd. (MTL-T) increased 0.8 per cent after it reported its first-quarter profit fell 20 per cent compared with a year earlier, while acquisitions helped boost its revenue.
The trucking and logistics company says it earned $17.7-million or 20 cents per diluted share for the quarter ended March 31, down from a profit of $22.2-million or 25 cents per diluted share a year earlier.
Revenue for the quarter totalled $497.1-million, up from $462.6-million in the same quarter last year.
On an adjusted basis, the company says it earned 21 cents per share, down from an adjusted profit of 25 cents per share a year earlier. Analysts on the Street had projected 27 cents.
Chair and senior executive officer Murray K. Mullen says the company continues to believe that acquisitions are the only viable means of growth in this market.
“The tariff/trade debate did not materially impact overall freight demand in the first quarter. However, like others, we believe the consequences of a prolonged stalemate has the potential to impact the economy and freight demand,“ he said in a press release. ”As such, we know that there are elevated risks in the near term. This is why we remain on high alert and will adjust as markets dictate. Longer term, however, we take the view that the markets will adjust and, eventually, negotiated agreements will calm the situation. Our thesis remains that acquisitions are the only viable means of growth in this market, and we will continue to look at opportunities that add long term value for our shareholders."
In a research note, Raymond James analyst Michael Barth said: “Bottom line: Negative. Headline OIBDA was 6 per cent below consensus, with margin compression and tariff/trade uncertainty being the themes du jour. We suspect this quarter will ultimately be received poorly by the market given headline margin weakness across the two largest segments, and the otherwise cautious tone of the release.”
Apple Inc. (AAPL-Q) and Meta Platforms Inc. (META-Q) increased in response to European Union watchdogs fined both tech giants hundreds of millions of euros Wednesday as they stepped up enforcement of the 27-nation bloc’s digital competition rules.
The European Commission imposed a 500 million euro (US$571-million) fine on Apple for preventing app makers from pointing users to cheaper options outside its App Store.
The commission, which is the EU’s executive arm, also fined Meta Platforms 200 million euros because it forced Facebook and Instagram users to choose between seeing personalized ads or paying to avoid them.
The punishments were smaller than the blockbuster multibillion-euro fines that the commission has previously slapped on Big Tech companies in antitrustcases.
Intel Corp. (INTC-Q) gained 5.5 per cent on reports is set to unveil plans this week to slash more than 20 per cent of its workforce, in a move to streamline operations and reduce bureaucratic inefficiencies.
The layoffs are part of a broader strategy to refocus on an engineering-driven culture, according to the report.
The layoffs mark a major step under new CEO Lip-Bu Tan, who took over Intel last month, to revive the faltering American firm after years of challenges and management missteps.
Last month, Reuters reported that Mr. Tan was planning an overhaul of the company’s manufacturing and AI operations after the embattled firm lost its lead in chipmaking to Taiwan’s TSMC and in recent years missed out on surging demand for AI processors, allowing competitors such as Nvidia to dominate those markets.
Last week, Reuters reported that Mr. Tan was flattening Intel’s leadership team, and appointed a new AI chief to head Intel’s artificial intelligence ambitions.
Boeing Co. (BA-N) reported a smaller-than-expected quarterly loss on Wednesday, as the U.S. planemaker produced and delivered more jets, after quality problems and a crippling strike shuttered most of its aircraft production late last year.
Boeing, which has been delivering more jets, wants to roughly double output of its top-selling 737 MAX plane from its January level to a regulator-capped 38 per month by the end of this year.
The company’s shares rose 6.1 per cent as its loss was not as large as investors feared and after a gradual increase in 737 production during the quarter.
The planemaker is working to chart a recovery under recently appointed CEO Kelly Ortberg, who is taking steps to streamline operations and strengthen its balance sheet.
But Boeing faces industry supply-chain snags that have delayed some jet production even as planemakers’ backlogs swelled last year on strong demand for aircraft. It reported an US$11.8-billion loss for 2024 due to problems at its major units.
Boeing is also dealing with the fallout of a U.S.-China trade war that led to the return of two of its planes destined for a Chinese carrier and could further strain relations with the fast-growing aviation market.
Free cash flow usage, a metric closely watched by investors, improved during the quarter to negative US$2.3-billion, beating analysts’ expectations of negative US$3.6-billion on average, according to data compiled by LSEG. Boeing CFO Brian West said in March that cash flow could improve in the first quarter by hundreds of millions of dollars.
On Tuesday, Boeing announced the sale of portions of its Digital Aviation Solutions business, including navigation unit Jeppesen, for US$10.55-billion, as part of Mr. Ortberg’s plan to reduce debt by selling non-core assets.
In a letter to employees on Wednesday, Mr. Ortberg referred to 2025 as Boeing’s “turnaround year,” citing higher first-quarter deliveries and product improvements.
“We’re building higher quality airplanes and delivering them with more predictability,” he said in the letter.
The planemaker reported an adjusted loss of 49 US cents per share during the first quarter, compared with analysts’ average expectations of US$1.29, according to data compiled by LSEG.
Its revenue increased 18 per cent to US$19.5-billion in the quarter through March, marginally above Wall Street expectations of US$19.45-billion.
Tesla Inc. (TSLA-Q) investors breathed a sigh of relief after CEO Elon Musk said he would refocus his attention on the electric automaker, but that promise did not entirely dispel worries that his right-wing shift had irrevocably damaged the company’s brand.
The automaker’s shares rose 5.4 per cent on Wednesday after Mr. Musk said he would cut back his work for U.S. President Donald Trump to a day or two per week from sometime next month after Tesla posted a 71-per-cent slump in net income and a sharp drop in automotive revenue.
The billionaire’s work as an adviser to Mr. Trump and his embrace of right-wing politics in Europe have drawn widespread opposition, including protests and vandalism at Tesla showrooms.
“His time is very valuable, and I think Tesla needs his attention,” said Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management and a prominent investor.
“But it doesn’t change that people don’t want the Tesla brand. I don’t know how you fix that.”
Shares of the world’s most valuable automaker have lost about half its value since hitting a record high in December, reducing its market capitalization by more than US$500-billion, largely on concerns that brand damage could hurt sales for a second straight year.
While some investors welcomed Mr. Musk committing more time to Tesla, experts warned the brand faces a long road to recovery, especially as political controversy continues to weigh on its image.
AT&T Inc. (T-N) beat Wall Street estimates for wireless subscriber additions in the first quarter on Wednesday, driven by steady demand for its plans that bundled high-speed fiber services and 5G mobile offerings.
Shares of the Dallas-based company gained almost 1 per cent on the news.
The U.S. wireless carrier’s focus on bundling to fend off intense competition in a saturating market and aggressive trade-in offers helped it gain 324,000 net monthly bill-paying wireless phone subscribers in the quarter.
That compared with FactSet estimates of 258,300 additions.
After flagging elevated rate of subscribers leaving the service in January, AT&T ramped its deals with promotions for the latest iPhones to include trade-ins of old models in any condition.
Total revenue rose 2 per cent to US$30.6-billion in the first quarter, compared with analysts’ estimate of US$30.35-billion, according to LSEG data.
More than 40 per cent of AT&T customers that use fiber also opted for its wireless plans, the company said.
The company has attracted subscribers with the January launch of the AT&T Guarantee, a policy of offering bill credits for any disruption on its network.
The results mark the first quarter that excludes the results of its 70-per-cent stake in DirecTV, which it is selling for US$7.6-billion.
The company reaffirmed its free cash flow and adjusted profit guidance for the year and said that it plans to commence share repurchases in the second quarter.
Eli Lilly and Co. (LLY-N) finished 0.2 per cent higher after it said on Wednesday it had sued four compounders for selling unapproved products containing tirzepatide, after a U.S. judge last month blocked pharmacies from making copies of its weight-loss and diabetes medicines.
Compounders were, until recently, allowed to produce copies of obesity drugs while the FDA classified them as being in shortage, under U.S. rules that permit such manufacturing only during supply gaps.
Tirzepatide is the main ingredient in Lilly’s weight-loss and diabetes medicines, including the blockbuster, Mounjaro.
Lilly’s lawsuits, to be filed in California, name Mochi Health Corp, Fella Health and Delilah, Willow Health Services, and Henry Meds, accusing them of selling tirzepatide knockoffs — including versions with additives or in oral form — without clinical evidence of safety or effectiveness.
Indianapolis-based Lilly has already sued more than two dozen medical spas, wellness centers and compounding pharmacies for selling products claiming to contain tirzepatide.
Earlier this month, the company sued two other compounders and said it would send about fifty cease and desist letters, asking companies to confirm that they have already ceased mass compounding.
Philip Morris International Inc. (PM-N) hiked its annual profit forecast on Wednesday, delivering early on investor hopes for outlook raises throughout 2025, thanks to the performance of newer products, including the nicotine pouch brand ZYN.
Investors have cheered Marlboro maker’s performance in recent quarters, as it has beaten forecasts and raised its outlook amid growth in newer products like ZYN and rising cigarette prices.
Shares of the company, which are up about 36 per cent so far this year, rose 2.5 per cent in Wednesday trading.
ZYN’s surging popularity quickly rebounded after supply issues constrained sales last year, driven particularly by U.S. consumers seeking smoking alternatives.
Its quarterly ZYN shipment volume in the U.S. grew 53 per cent, compared to a year earlier. It was up 42 per cent in the fourth quarter.
Its flagship alternative product heated tobacco device IQOS, which also saw continued strength due to growth in regions like Europe and Japan, had its first U.S. launch in Texas earlier this year for $60 each.
The company has been investing heavily in its portfolio of smoking alternatives with the aim of generating half of its sales from smoke-free products by the end of 2025.
“We remain confident in our ability to deliver superior results, despite an uncertain and volatile global economic environment, and now forecast double-digit adjusted diluted EPS growth in dollar terms for the full year,” said CEO Jacek Olczak.
Philip Morris expects adjusted annual profit in the range of US$7.36 to US$7.49 per share, compared with its prior forecast between US$7.04 and US$7.17.
Its first-quarter revenue rose 5.8 per cent to US$9.30 from a year ago. Analysts, on average, estimated a 3.8-per-cent rise to US$9.13-billion, as per data compiled by LSEG.
The company reported adjusted profit of US$1.69 per share, compared to analysts’ estimates of US$1.61 per share.
On the decline
Shares of Rogers Communications Inc. (RCI.B-T) turned lower late in the trading day and closed down 0.8 per cent added more postpaid wireless subscribers than expected and met revenue expectations in what analysts predicted would be an underwhelming quarter for the country’s largest telecom companies.
The Toronto-based communications and entertainment company also said it was removing the 2-per-cent discount on dividend reinvestment plan (DRIP) shares, suggesting a shift in capital allocation strategy as the company aims to pay down debt. The company also made progress toward reducing debt leverage by recently finalizing a $7-billion network deal.
Rogers added 11,000 net postpaid wireless phone subscribers in the first quarter, above analyst consensus of 7,000. This was down 87 per cent from last year, partly due to slowing immigration following federal target cuts and fewer student visas.
The company added 23,000 prepaid phone subscribers, beating consensus of 21,000 adds.
Rogers reported $4.5-billion of service revenue during the three-month period ended March. 31, up 2 per cent from last year. Total revenue was $4.9-billion, meeting analyst consensus. Net income was $280-million, up 9 per cent this quarter compared to last year.
First-quarter profit amounted to 52 cents per share, up from 48 cents per share in the same period of 2024.
Telecom stocks are typically considered safe buys during economic downturns, given that consumers usually continue to pay their phone and internet bills. Yet despite broad tariff threats from the U.S., as of market close before earnings, Rogers’ stock price had fallen nearly 20 per cent since the beginning of the year, with some analysts expressing continued concerns about the company’s leverage.
- Irene Galea
BP PLC’s (BP-N) NYSE-listed shares slid 0.9 per cent after reports activist investor Elliott Management has urged it to boost its free cash flow to US$20-billion by 2027 from around US$8-billion last year through significant spending cuts and cost reductions
Elliott has increased its stake in BP to just over 5 per cent in the form of derivative contracts, according to a regulatory notice on Tuesday, placing Elliott between top shareholders BlackRock and Vanguard, according to LSEG data.
Elliott has met with more than 20 investors who are among BP’s largest active shareholders, the source said.
Reuters reported in March that Elliott had discussed the need for deeper spending and cost cuts and potential leadership changes with other BP shareholders and wanted BP to divest its renewable power business.
BP, which has said it received good feedback from shareholders on its strategy, said in an emailed statement that it welcomes constructive feedback from all shareholders. Elliott declined to comment.
Elliott’s investment in BP is via equity swaps, which are financial contracts that allow an investor to benefit from stock movements without actually owning the shares. Elliott’s stake does not carry voting rights, a source told Reuters.
BP, whose stock has lagged rivals such as Shell and Exxon for years, has been striving to enhance its share price.
With files from staff and wires