The earnings season is here and several companies will be reporting their September quarter results today. Here we look at three companies on the TSX that will publish their Q3. These TSX stocks are Thomson Reuters (TSX:TRI)(NYSE:TRI), Equitable Group (TSX:EQB) and Goeasy (TSX:GSY).
Let’s see what investors can expect from each of these companies in Q3.
Thomson Reuters earnings might rise 41% in Q3
Analysts tracking Thomson Reuters expect the company to post Q3 revenue of $1.43 billion and earnings of $0.38. This indicates a year-over-year revenue growth of 1.4% while earnings growth is forecast at a healthy 40.7%.
TRI is a multinational media heavyweight and the stock has climbed close to 12% year-to-date. The stock also has a forward yield of 1.9% which remains sustainable given its stellar earnings growth and a payout ratio of less than 50%.
Thomson Reuters has consistently outpaced the broader markets and has returned 77% in the last five years. The stock is trading at a forward price to earnings multiple of 57, which might seem expensive. However, its earnings are forecast to rise at an annual rate of 20% in the next five years.
Analysts tracking Thomson Reuters have a 12-month average target price of $80, which means the stock is trading at a premium of 24%.
Equitable Group may gain 10% in the next year
Equitable Group provides financial services to retail and commercial customers in Canada. It accepts term deposits as well as guaranteed income certificates (GICs)m while loan products include residential mortgages, home equity, and commercial lines of credit.
Analysts tracking Equitable Group expect the company to post Q3 revenue of $124.4 million and earnings of $3.08. This indicates a year-over-year revenue growth of 4.7% while earnings are forecast to decline by 2.8%.
Analysts also expect earnings to fall by 13% in 2020. Despite this pullback, the company’s bottom-line growth is estimated at an annual rate of 24.4% in the next five years. We can see EQB stock is significantly undervalued given its forward price to earnings multiple of 8.
Bay Street expects Equitable Group’s stock price to touch $95 in the next 12 months, which means it’s trading a discount of 10%.
Goeasy stock has climbed 316% since November 2015
Another financial services company that will release its Q3 earnings today is Goeasy. It has been one of the top-performing companies on the TSX and has returned a solid 316% in the last five years.
Further, Goeasy also sports a 2.6% dividend yield, making it attractive to income investors as well. Goeasy has been volatile amid the pandemic and the stock fell from $80 in February to just $21 in March. This means the stock has climbed a stellar 240% since March 2020 to its current trading price of $71.
Analysts tracking Goeasy expect the company to post Q3 revenue of $156.5 million and earnings of $1.72, indicating a year-over-year revenue growth of 34% while earnings are forecast to expand by 79%.
Goeasy stock is trading at a forward price to earnings multiple of just 10.7, indicating it has massive upside potential looking at its robust earnings expansion.
