The Motley Fool

Manulife, Gildan Beat Expectations, Constellation Didn’t

It was a reasonably busy day for earnings in today’s Canadian market with a good number of large-caps marking their quarterly check-ins.  Here’s a rundown on three of the more prominent releases:

Manulife Financial (TSX:MFC,NYSE:MFC)

Even though its reported profits fell by more than half vs. last year’s first quarter, Manulife shares staged a nice rally on Thursday, climbing by more than 4%.  RBC’s analyst indicated that an MCCSR ratio at the high end of the range and earnings that were ahead of expectations if larger moving parts were excluded was the likely cause of today’s solid performance.

Gildan Activewear (TSX:GIL,NYSE:GIL)

Gildan shares finished up by about 1.0% after it too reported a stronger than expected quarter.  Adjusted EPS of $0.59 was ahead of the consensus $0.56 estimate and the company narrowed its full-year EPS guidance to $2.65-$2.70 from $2.60-$2.70.

Constellation Software (TSX:CSU)

At $1.57, Constellation’s EPS missed the consensus estimate of $1.74 by a wide margin.  EBITDA margins were also below the street’s expectations.  Organic growth slowed and the company spent $73 million on acquisitions in the quarter.  This brings the run-rate for the year to $137 million, well ahead of management’s $100 million target.  The stock was initially hammered when the market opened, falling by more than 4% from yesterday’s close, but managed to rally throughout the day and close down by less than 1%.

The Canadian market is loaded with resource and financial stocks which makes passively investing in this country a highly treacherous endeavor.  We have created a special FREE 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 does not own any of the companies mentioned in this report at this time.  The Motley Fool does not own shares in any of the companies mentioned.     

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.