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Canadian Stocks Lower On Global Economics Concerns; TD Bank Doing Downward Dog, Lululemon Upward Dog On Respective Results
By: MT Newswires
Having lost small gains early in today's session and again mid-morning, Canada's main stock market, the Toronto Stock Exchange, appears to have settled down around a dozen points or so as investors and traders wait for proof that the U.S. budget talks will be completed successfully and on time, and digest comments by European Central Bank President Mario Draghi to the effect that economic weakness will persist next year. Only the Industrials and Metals & Mining sectors are higher.
Financial stocks are struggling, falling nearly 1% as a group, with Toronto-Dominion Bank (TD, TD.TO) falling 2% after announcing its latest quarterly results and a US$668-million deal for Epoch Holding Corp ( EPHC ), paying $28 a share for the New York-based asset manager. The market is reportedly wary about TD's higher expenses and loan loss provisions and worried about a slowdown in mortgage growth in a slowing economy.
But on the positive side, athletic apparel retailer lululemon (LULU,L LL.TO) is ahead nearly 4% after reporting Q3 earnings and revenue that topped analyst expectations. Per-share net income for the period was $0.39, beating the Street view by $0.02. Sales totaled $316.5 million, also surpassing expectations by $11.5 million.
For Q4, the company expects revenue in the range of $475 million to $480 million and EPS of $0.71 to $0.73. The Street is at $490 million in revenue and earnings of $0.75 per share. For the full year, LULU sees revenue in the range of $1.36 billion to $1.35 billion and earnings of $1.81 to $1.83 per share. Analysts are expecting $1.37 billion in revenue and EPS of $1.83.