TSX Stocks: 3 Canadian Bigwigs to Release Q3 Earnings Next Week

TSX stocks have already gained more than 20% so far this year. Superior earnings growth might give a vital impetus to them in the next few weeks.

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Canadian markets will likely keep climbing higher, driven by higher-than-expected third-quarter earnings. TSX stocks have already gained more than 20% so far this year. Superior earnings growth compared to last year might give a vital impetus to them in the next few weeks. Here are three Canadian bigwigs that will report next week.

Restaurant Brands International

Burger king parent company Restaurant Brands International (TSX:QSR)(NYSE:QSR) will report its third-quarter earnings on October 25. The stock has been a long underperformer and has gone nowhere since last year. While TSX stocks at large zoomed 30% in the last 12 months, QSR stock managed to gain just 1%.

However, things might change post-Q3 earnings. According to analyst consensus, Restaurant Brands will report revenues of $1.95 billion for the quarter ended on September 30, 2021. That’s an encouraging 45% growth year over year. Notably, such revenue growth could help the company’s margins and free cash flow growth.

The company saw a decent revenue recovery in the last quarter as well. Its net income jumped to $259 million in Q2 2021 against $106 million in Q2 2020.  

The reopening of global economies could notably boost its financials in the upcoming quarters. Restaurant Brands has highly popular banners under its name with a global presence that offers a unique value proposition. Thus, solid financial growth during Q3 could send the QSR stock notably higher.

Suncor Energy

Canada’s integrated energy giant Suncor Energy (TSX:SU)(NYSE:SU) will report its Q3 earnings on October 27. The energy sector has been extremely energetic this year due to rallying crude oil prices. However, Suncor Energy stock has gained 30% this year, against peers’ average gain of 75%.

Suncor Energy’s profit growth was slower this year compared to its peers. Analysts expect it to report $10.3 billion in revenues for the third quarter, indicating a 45% year-over-year growth. Suncor could also see superior bottom-line growth due to higher demand and higher energy commodity prices in Q3.

Suncor Energy stock currently yields 3%, lower than peers. The company will likely work on improving its balance sheet and return cash to shareholders with its strengthening liquidity position. 

Suncor Energy is Canada’s largest oil sands producer. Its integrated operations cover oil production, refining, as well as marketing. These integrated operations help lessen the impact of oil price volatility.

Shopify

Canada’s top growth stock Shopify (TSX:SHOP)(NYSE:SHOP) broke out higher this month after a notable weakness in September. The stock is up more than 25% this year, in line with the broader markets. The commerce-enabling company Shopify will report its third-quarter earnings on October 28.

Investors must be hoping that SHOP to continue its stellar top-line growth during the quarter. Despite the valuation concerns, the stock could rally post-earnings driven by superior quarterly performance. Shopify has been one of the fastest-growing companies that have managed to grow its revenues by 65% compound annual growth rate (CAGR) for the last three years.

Shopify offers an integrated platform for omnichannel commerce that helps merchants with sales, payments, financing, shipping, marketing, etc.

Although it has shown steep growth in the last few years, the company could continue its upward climb driven by higher online spending and product portfolio expansion.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends Restaurant Brands International Inc. and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. Fool contributor Vineet Kulkarni has no position in any of the stocks mentioned.

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