3 Companies I’m Watching Closely This Earnings Week

I will be watching Brookfield Renewable Corporation’s (TSX:BEPC) earnings release closely.

| More on:
A worker gives a business presentation.

Source: Getty Images

A significant number of Canadian companies are reporting earnings this week. Some of them are major, well-known Canadian corporations; others are smaller outfits. Among the companies reporting this week is last week’s biggest headline-maker, a green energy company that signed the biggest clean energy deal in history.

In this article, I will explore three Canadian companies I’m watching closely this earnings week, starting with the history-maker just mentioned.


Brookfield (TSX:BN) is the parent company of Brookfield Renewable Corporation, a company that just signed history’s biggest-ever clean energy deal with Microsoft. The deal will see Brookfield Renewable supply Microsoft with 10.5 gigawatts of green energy for its facilities in North America and Europe. Brookfield Renewable itself reported last week, but Brookfield’s release is still to come.

Brookfield Renewable’s Microsoft deal is very enticing. However, there is much more to Brookfield than just that. The company is also involved in insurance, asset management and real estate. It has many different partnerships that trade on the TSX and the New York Stock Exchange.

When Brookfield releases its earnings on May 9, investors will get to see how well the company’s many subsidiaries performed. Interest rates have been a concern for this company, as it (or, more accurately, its partially owned subsidiaries) has a lot of debt. So, investors will want to pay close attention to interest expenses in Brookfield’s earnings release.

Brookfield Asset Management

Brookfield Asset Management (TSX:BAM) is another Brookfield company. It reports on May 8. Brookfield Asset Management is the most profitable of all the Brookfield companies, with a 45% net income margin (i.e., profit generated per dollar of revenue).

There will be a lot to watch in Brookfield Asset Management’s upcoming release. First, we will get to see how much fee income the company generated in the second quarter. Second, we’ll get some indications as to how much interest the company’s funds are seeing. Third, we’ll get a host of operational updates that will tell a lot about how BAM is performing overall.

Unlike Brookfield Corp, BAM has almost no debt, so interest expense is not a concern here. On the whole, I’d expect good things.


Last but not least we have Shopify (TSX:SHOP), Canada’s very own unicorn tech company. Shopify is known for its rapid historical growth, which has slowed down somewhat in recent years. Investors expect the company to grow its revenue by high percentages when it reports its earnings on May 8. If revenue and earnings growth slow down, the company’s stock could take a beating.

Shopify has a lot of things going for it. It has a high market share, making it the dominant e-commerce shopping cart company in the world. It has a relatively low-fee model compared to some of its alternatives, making it attractive to vendors. Finally, it recently became free cash flow positive after years of not being profitable, which points to the possibility of a prosperous future. Shopify is Canada’s best-known technology stock for a reason. With rapid growth and newfound profitability, it gives investors a lot to be excited about.

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.

Fool contributor Andrew Button has positions in Brookfield. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Brookfield, Brookfield Asset Management, Brookfield Corporation, Brookfield Renewable, and Microsoft. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Increasing yield
Dividend Stocks

2 High-Yield Dividend Stocks to Buy as They Bounce

These top dividend stocks still look cheap.

Read more »

ETF chart stocks
Dividend Stocks

The Best Canadian ETFs $100 Can Buy on the TSX Today

These three ETFs are the perfect options for investors looking for growth, income, and a base to hold long term.

Read more »

money cash dividends
Dividend Stocks

TFSA Pension: How to Earn $4,750 Per Year in Tax-Free Income

Here's why the TFSA should be an integral part of your retirement savings strategy.

Read more »

Man considering whether to sell or buy
Dividend Stocks

TELUS Stock: Buy, Sell, or Hold?

TELUS (TSX:T) stock has seen operational improvements but still remains down on a year-over-year basis. So, is it worth it?

Read more »

Senior Couple Walking With Pet Bulldog In Countryside
Dividend Stocks

Retirees: 2 Top TSX Dividend Stocks That Still Look Oversold

These great Canadian dividend stocks now offer high yields.

Read more »

edit Balloon shaped as a heart
Dividend Stocks

2 Dirt-Cheap Retail Stocks Fit for Dividend Lovers

Metro (TSX:MRU) and another great retailer that could be ripe for buying in May 2024 for the next three years.

Read more »

Dividend Stocks

Bull Market Buys: 1 Magnificent Stock to Own for the Long Run

This one cyclical stock could be the best long-term option for investors, especially while shares still offer a steal of…

Read more »

Paper airplanes flying on blue sky with form of growing graph
Dividend Stocks

Outperform the TSX With This Lucrative Dividend Stock

Hydro One is a dividend stock that should beat the TSX index due to a widening earnings base and rising…

Read more »