What to Expect From These Four Companies When They Report on Tuesday

4 large caps set to swing into action when they report Q1 results.

Iain Butler

Chief Investment Advisor, Motley Fool Canada Fool since November 2012 Iain Butler is Lead Advisor for Stock Advisor Canada. He is also the Chief Investment Advisor for Motley Fool Canada. Before joining the Fool, Iain was a “buy-side” analyst and through this experience is well-versed in the idiosyncratic ways of the Canadian market. His investing interests are centred on scouring the market for interesting businesses that trade at reasonable prices and offer an appealing risk/reward relationship. Since joining the Fool in 2012, Iain dedicates each day to spreading Foolishness throughout this great country!

Published April 29, 2013 2:18 pm EDT

Canadian earnings are set to hit their stride this week and Tuesday will see four prominent large caps make their quarterly release available to the masses.

Suncor Energy (TSX:SU,NYSE:SU) (technically releases at 10pm EST Monday (weird?)), Thomson Reuters (TSX:TRI,NYSE:TRI), Canadian Oil Sands (TSX:COS), and Yamana (TSX:YRI,NYSE:AUY) are in the starter’s gate, ready to roll. Tabled below is a snapshot for each of what to expect:

Company Name	Exp Q1 EPS	YoY % Chg	Consensus	12 month return
Yamana Gold	$0.19	-17.4%	Outperform	-15.7%
Suncor Energy	$0.76	-18.3%	Outperform	-6.5%
Thomson	$0.32	-27.3%	Hold	15.6%
Cdn Oil Sands	$0.43	-34.8%	Hold	-10.4%

Source: Capital IQ

All four are expected to report earnings dramatically below year ago levels. Three of the four have obvious ties to the commodity world and therefore have been impacted by weaker prices in that arena. Each of their respective 1-year stock returns are in-line with the direction that earnings are expected to take.

Thomson released guidance for the quarter at its February investor day and even though earnings are expected to be down year-over-year like the others, the company has strung together several stronger than expected quarters, hence the positive move for the stock. We’ll see if the string continues tomorrow.

Foolish Takeaway

The long-term implications that tomorrow’s release has for any of these companies is likely to be minimal, however, a deviation from what’s expected could cause the shares to make a short-term move. If you have an idea what to look for and are ready to act should an anomaly appear, you may find yourself with a nice little opportunity to transact.

The S&P/TSX Composite Index is loaded with resource and financial stocks. Because of this, investors that rely on Canadian Index funds or ETFs severely lack diversification in their portfolio, opening them to undue risks. We have created a special report that outlines an easy to implement strategy and 5 Canadian stocks that reduce the risks involved with passively investing in the Canadian market. Click here now to receive “Buy These 5 Stocks Instead of Following a Flawed Piece of Advice” – FREE!

Follow us on Twitter and Facebook for the latest in Foolish investing.

Fool contributor Iain Butler is short $14 June 2013 put options on Yamana Gold and owns shares in Yamana Gold and Canadian Oil Sands outright. The Motley Fool does not own shares in any of the companies mentioned.