Canada’s Barrick Gold (ABX) has announced a new $1 billion U.S. stock buyback program after the company reported mixed financial results.
The Toronto-based company reported earnings per share of $0.27 U.S. for the fourth and final quarter of 2023. That beat analyst forecasts of $0.21 U.S.
Revenue for the period came in at $3.06 billion U.S., missing expectations of $3.14 billion U.S.
Total gold production last year rose 1.4% to 1.05 million ounces while the average realized price per ounce increased 3% to $1,986 U.S. in Q4 2023.
The company’s copper production was basically unchanged last year at 113 million pounds.
In terms of forward guidance, Barrick Gold said that it anticipates higher gold production this year as prices for the precious metal near all-time highs.
Management said that they expect gold production to range between 3.9 million ounces and 4.3 million ounces this year, compared with 4.05 million ounces in 2023.
Average spot gold prices rose more than 13% in the final quarter of 2023.
Gold is currently trading right around $2,000 U.S. per ounce, which is not far from its all-time high of $2,135.39 U.S. per ounce.
Shopify Inc. reported a fourth-quarter profit of US$657 million compared with a loss of US$623 million a year earlier as its revenue rose 24 per cent.
The e-commerce technology firm, which keeps its books in U.S. dollars, says the profit amounted to 51 cents US per diluted share for the quarter ended Dec. 31, up from a loss of 49 cents US per diluted share in the last three months of 2022.
On adjusted basis, Shopify says it earned 34 cents US per diluted share, up from adjusted profit of seven cents US per share.
Revenue totalled US$2.14 billion, up from US$1.74 billion a year earlier.
The increase in revenue came as Shopify’s merchant solutions revenue rose to US$1.62 billion compared with US$1.34 billion a year earlier, boosted by an increase in driven primarily increased sales by its merchants. Subscription solutions revenue was US$525 million, up from US$400 million.
In its outlook for the first quarter of 2024, Shopify says it expects overall revenue to grow at a low-twenties percentage rate on a year-over-year basis.
This report by The Canadian Press was first published Feb. 13, 2024.
Restaurant Brands International Inc. reported its fourth-quarter net income more than doubled compared with a year ago.
The parent company of Tim Hortons, Burger King and other brands, which keeps its books in U.S. dollars, says its net income totalled US$726 million or $1.60 per diluted share.
The result was up from US$336 million or 74 cents US per diluted share for the last three months of 2022.
The company says the increase was driven by a larger income tax benefit and increased income from operations, partially offset by higher interest costs.
On an adjusted basis, Restaurant Brands says it earned 75 cents US per diluted share in its most recent quarter, up from 72 cents US per diluted share a year earlier.
Revenue totalled US$1.82 billion, up from US$1.69 billion in the same quarter a year earlier.
This report by The Canadian Press was first published Feb. 13, 2024.
Intact Financial Corp. says it earned $531 million in the fourth quarter of 2023, a 50 per cent increase from earnings of $353 million during the same quarter a year earlier.
The Toronto-based company says earnings of $1.3 billion for 2023 as a whole, however, were down 46 per cent compared with a year earlier amid numerous natural disasters.
Earnings per share were $2.78 for the fourth quarter, up from $1.88.
Intact says its board approved a quarterly dividend on outstanding common shares of $1.21 per share, an 11-cent increase.
The company says over the next twelve months, it expects hard insurance market conditions to continue, driven by inflation and losses from catastrophes.
In January, the company estimated total catastrophe losses for the fourth quarter were $200 million on a pre-tax basis.
This report by The Canadian Press was first published Feb. 13, 2024.
Gold prices fell sharply on Tuesday as the dollar climbed higher after data showing bigger than expected increase in U.S. consumer prices in the month of January dashed hopes of an early rate cut by the Federal Reserve.
CME Group’s FedWatch Tool is currently indicating just an 8.5% chance of a quarter point rate cut in March, while the chances of a quarter point rate cut in early May have fallen to 35.3%.
The dollar, which remained subdued ahead of the inflation data, climbed higher soon after the release of the report from the Labor Department. The dollar index surged to 104.88, gaining nearly 0.7%.
Gold futures for April ended down $25.80 at $2,007.20 an ounce.
Silver futures for March ended lower by $0.613 at $22.154 an ounce, while Copper futures for March settled at $3.7110 per pound, losing $0.0130.
“Gold has crumbled under the pressure of rates staying higher. How much worse it gets for the yellow metal will ultimately depend on how bad the data gets but, under the circumstances, we’re certainly back in a “good news is bad news” scenario ahead of the retail sales data,” says Craig Erlam, Senior Market Analyst at OANDA, UK & EMEA. “The fairytale scenario of a strong economy, low inflation, and rate cuts now looks a step too far.”
The Labor Department said its consumer price index rose by 0.3% in January after inching up by 0.2% in December. Economists had expected consumer prices to edge up by 0.2%.
While the report also showed the annual rate of consumer price growth slowed to 3.1% in January from 3.4% in December, economists had expected the pace of growth to slow to 2.9%.
Excluding food and energy prices, core consumer prices climbed by 0.4% in January after rising by 0.3% in December. Core prices were expected to increase by 0.3%.
With Federal Reserve officials repeatedly saying they need more “confidence” inflation is slowing before lowering interest rates, the data has further reduced optimism about a near-term rate cut.
Oil prices climbed higher on Tuesday amid concerns about supply due to the ongoing tensions in the Middle East, where Houthi militants continue to attack commercial vessels in the Red Sea.
A drop in Russian crude oil exports also contributed to the increase in oil prices.
Meanwhile, the United States rejected Russian President Vladimir Putin’s suggestion of a ceasefire in Ukraine, Reuters says in a report, citing some sources.
Data showing consumer price inflation in the U.S. rose by more than expected in the month of January has dashed hopes of an early rate cut by the Federal Reserve and lifted the dollar higher. The dollar’s rise capped oil’s advance.
West Texas Intermediate Crude oil futures for March ended higher by $0.95 or about 1.25% at $77.87 a barrel, rising for a seventh straight session.
Brent crude futures settled at $82.77 a barrel, gaining $0.77 or about 0.94%.
The monthly report from OPEC reveals dispersion and non-compliance yet again among OPEC members on the supply cuts that were agreed upon at the end of 2023. Iraq is said to be the biggest group member that is non-compliant.
In U.S. economic news, the Labor Department said its consumer price index rose by 0.3% in January after inching up by 0.2% in December. Economists had expected consumer prices to edge up by 0.2%.
While the report also showed the annual rate of consumer price growth slowed to 3.1% in January from 3.4% in December, economists had expected the pace of growth to slow to 2.9%.
Excluding food and energy prices, core consumer prices climbed by 0.4% in January after rising by 0.3% in December. Core prices were expected to increase by 0.3%.
With Federal Reserve officials repeatedly saying they need more “confidence” inflation is slowing before lowering interest rates, the data has further reduced optimism about a near-term rate cut.
Investors now await weekly oil reports from the American Petroleum Institute (API), due later today, and the Energy Information Administration (EIA), due Wednesday morning.
The Canadian market suffered one of its worst setbacks in recent months as stocks tumbled on sustained selling pressure on Tuesday after data showing a bigger than expected increase in U.S. consumer price inflation reduced the possibility of a rate cut by the Federal Reserve anytime soon.
Mirroring widespread selling, all the sectoral indices ended in the red. Technology, materials, consumer discretionary, utilities, financials and energy stocks were among the major losers.
The benchmark S&P/TSX Composite Index, which plunged to 20,466.50, ended with a loss of 482.33 points or 2.29% at 20,584.97.
The Information Technology Capped Index dropped 4.59%. The Materials Index tumbled 3.35%, while the Consumer Discretionary Index and the Utilities Index both ended down 2.37% and 2.3%, respectively.
The Healthcare, Communication Services, Energy, Financials and Real Estate indexes shed 1.5 to 2.1%, respectively.
SSR Mining Inc. (SSRM.TO) tanked 53.5%, weighed down by the company’s announcement that it is suspending operations at its Çöpler mine.
Shopify Inc (SHOP.TO) shares plunged 12.5% after the company forecast its Q1 revenue growth rate below estimates.
BRP Inc (DOO.TO), Precision Drilling Corporation (PD.TO), Restaurant Brands International (QSR.TO), Cargojet (CJT.TO) and goeasy (GSY.TO) lost 3.2 to 4.5%.
The Canadian market suffered one of its worst setbacks in recent months as stocks tumbled on sustained selling pressure on Tuesday after data showing a bigger than expected increase in U.S. consumer price inflation reduced the possibility of a rate cut by the Federal Reserve anytime soon.
Mirroring widespread selling, all the sectoral indices ended in the red. Technology, materials, consumer discretionary, utilities, financials and energy stocks were among the major losers.
The benchmark S&P/TSX Composite Index, which plunged to 20,466.50, ended with a loss of 482.33 points or 2.29% at 20,584.97.
The Information Technology Capped Index dropped 4.59%. The Materials Index tumbled 3.35%, while the Consumer Discretionary Index and the Utilities Index both ended down 2.37% and 2.3%, respectively.
The Healthcare, Communication Services, Energy, Financials and Real Estate indexes shed 1.5 to 2.1%, respectively.
SSR Mining Inc. (SSRM.TO) tanked 53.5%, weighed down by the company’s announcement that it is suspending operations at its Çöpler mine.
Shopify Inc (SHOP.TO) shares plunged 12.5% after the company forecast its Q1 revenue growth rate below estimates.
BRP Inc (DOO.TO), Precision Drilling Corporation (PD.TO), Restaurant Brands International (QSR.TO), Cargojet (CJT.TO) and goeasy (GSY.TO) lost 3.2 to 4.5%.
read moreRTTNews1yTwo-thirds Of NFT Buyers Want To Make Profit FromThem: SurveyTop Biotech IPOs Of 2021 That Soared As Much As 500%-Share Story FacebookLinkedInTwitterTelegramWhatsAppCopyAboutLogin
Bank of Montreal (BMO.TO), Royal Bank of Canada (RY.TO), WSP Global Inc (WSP.TO), George Weston (WN.TO) and Constellation Software (CSU.TO) ended down 1.6 to 2.5%.
Among the stocks that bucked the weak trend, Softchoice Corporation (SFTC.TO) climbed 5.6% and Waste Connections (WCN.TO) surged 2.3%.
The Labor Department said its consumer price index rose by 0.3% in January after inching up by 0.2% in December. Economists had expected consumer prices to edge up by 0.2%.
While the report also showed the annual rate of consumer price growth slowed to 3.1% in January from 3.4% in December, economists had expected the pace of growth to slow to 2.9%.
Excluding food and energy prices, core consumer prices climbed by 0.4% in January after rising by 0.3% in December. Core prices were expected to increase by 0.3%.
With Federal Reserve officials repeatedly saying they need more “confidence” inflation is slowing before lowering interest rates, the data has further reduced optimism about a near-term rate cut.
Canada’s Shopify SHOP-T -10.46%decrease topped Wall Street estimates for fourth-quarter revenue and profit on Tuesday, riding on demand for its ecommerce services from merchants during the holiday shopping season.
However, the company’s shares were down more than 6 per cent in Toronto shortly after the opening bell.
“Shopify reported a strong quarter and exceeded revenue growth expectations. While guidance for the first quarter was also healthy, it may not be enough given high investor expectations,” said Gil Luria, analyst at D.A. Davidson.
Total revenue rose 24% to $2.14 billion for the three months to December, higher than analysts’ average estimate of $2.08 billion, according to LSEG data.
On an adjusted basis, Shopify earned 34 cents per share, beating expectations of 31 cents.
Shopify, which offers tools and services for businesses to set up their online stores, has launched new tools and offerings along with artificial intelligence products to stay ahead in a competitive e-commerce space.
Merchants on the platform reached a record of $9.3 billion in sales over the Black Friday-Cyber Monday weekend, the company had said in November, a 24% increase from a year earlier.
The company expects first-quarter revenue to grow at a low-20s percentage rate, while analysts were expecting a 20% rise.
Two-thirds Of NFT Buyers Want To Make Profit FromThem: SurveyTop Biotech IPOs Of 2021 That Soared As Much As 500%-Share Story