Bank of Montreal profit rises 5.4%
Feb 25 (Reuters) – Bank of Montreal reported a 5.4% rise in quarterly profit on Tuesday, helped by strength in its Canadian personal and commercial banking as well as capital markets businesses.
The lender said net income rose to C$1.59 billion ($1.20 billion), or C$2.37 per share, in the first quarter ended Jan. 31 from C$1.51 billion, or C$2.28 per share, a year earlier.
Germany CDU leadership candidate Merz says critical of ECB policy
BERLIN (Reuters) – Germany’s Friedrich Merz, a candidate for the leadership of Angela Merkel’s conservative Christian Democrats (CDU), said on Tuesday he viewed European Central Bank policy as worthy of criticism.
“On Europe policy and in particular on the euro, I have never made a secret of the fact that I see the European Central Bank’s policy critically,” he told reporters.
Scotiabank quarterly profit rises 7%
(Reuters) – Bank of Nova Scotia (BNS.TO), Canada’s third-biggest lender, said on Tuesday its first-quarter profit rose 7%, boosted by strength in its wealth management and global banking and markets units.
Net income rose to C$2.26 billion ($1.71 billion), or C$1.84 per share, in the quarter ended Jan. 31, from C$2.11 billion, or C$1.71 per share, a year earlier.
Police say 52 people were injured when car drove into German carnival
BERLIN (Reuters) – Some 52 people were injured when a car drove into a carnival parade in the German town of Volkmarsen, a police spokesman said on Tuesday, adding that there were no deaths but he could not rule out that some of the injured were in a critical condition.
He said a second man who had been detained was being investigated in relation to the carnival incident for taking a video.
Libbey Posts Wider Q4 Loss On Impairment Charges – Quick Facts
Libbey Inc. (LBY) reported a fourth-quarter loss per share of $0.76 compared to a loss of $0.18, prior year. Net loss in the fourth quarter of 2019 was affected by a $18.3 million non-cash impairment of long-lived assets in EMEA segment. Adjusted EBITDA increased 17.3 percent to $19.0 million.
Fourth-quarter net sales were $208.9 million, a decrease of 1.3 percent, or a decrease of 1.1 percent in constant currency from last year.
For 2020, the company projects: net sales flat to an increase of low-single digits; and adjusted EBITDA margins between 9 percent and 10 percent.
Aurora Cannabis initiated as hold at Needham on concerns of liquidity risk in the second half
Needham initiated coverage of Aurora Cannabis Inc. ACB, -7.19%ACB, -5.88% on Tuesday with a hold rating and $1.50 price target. Analysts Matt McGinley and Evan Greenblatt said the company has established itself as a low cot producer of cannabis, but remains deeply unprofitable and has to scale back its operating structure while attempting to grow revenue. "We expect restructuring to produce an entity capable of generating positive EBITDA by F1Q21, but any shortfalls in cost reduction or market development places the company at liquidity risk in 2H20," the analysts wrote in a note to clients. The Canadian cannabis market is structurally impaired with a shortage of retail stores clashing with excess production capacity, price pressures from the black market, challenging branding rules and limited signs that Cannabis 2.0 will have a meaningful impact in the first half. "We are optimistic that Canada will work through some of these issues over the next 2-years, but don’t expect to see many of the 300 LPs in Canada make it to that point," the Needham analysts wrote. Aurora shares rose 2.6% premarket in a rebound from Monday’s steep selloff across all markets. The stock has fallen 79% in the last 12 months, while the ETFMG Alternative Harvest ETF MJ, -5.46% has fallen 57% and the S&P 500 SPX, -3.35% has gained 15%.
Cracker Barrel Updates FY20 Outlook – Quick Facts
While reporting its financial results for the second quarter on Tuesday, Cracker Barrel Old Country Store, Inc. (CBRL) updated its financial outlook for fiscal 2020.
For fiscal 2020, the company now forecasts reported earnings between $8.55 and $8.65 per share, comparable store restaurant sales growth of 2.0 percent to 2.5 percent, and approximately flat comparable store retail sales growth.
The reported earnings outlook includes expected loss from the company’s equity method investment in its unconsolidated subsidiary, Punch Bowl Social, resulting in an unfavorable reported earnings per share impact of about $0.80.
It also includes transactional and integration expenses related to the company’s acquisition of Maple Street Biscuit Company, which are expected to result in an unfavorable impact to reported earnings per share of about $0.15.
Earlier, the company projected reported earnings for the year between $8.50 and $8.65 per share, and total revenue in a range of $3.15 billion to $3.20 billion.
On average, analysts polled by Thomson Reuters expect the company to report earnings of $9.41 per share for the year on revenues of $3.18 billion. Analysts’ estimates typically exclude special items.
Cracker Barrel shares rise after earnings beat expectations
Cracker Barrel Old Country Store Inc. CBRL, -1.64% shares rose 1.1% in Tuesday premarket trading after the restaurant chain reported fiscal second-quarter earnings and revenue that beat expectations. Net income totaled $61.2 million, or $2.55 per share, up from $60.8 million, or $2.52 per share, last year. Revenue totaled $846.1 million, up from $811.7 million the previous year. The FactSet consensus was for EPS of $2.49 and revenue of $837.0 million. Same-restaurant sales grew 3.8% while same-store sales were up 1.3%. The FactSet outlook was for same-restaurant sales growth of 2.2% and same-store sales growth of 0.6%. Traffic fell 0.2%. Holiday dining, both eat-in and off-premise, was a strength during the quarter, with Chief Executive Sandra Cochran highlighting the country fried turkey menu promotion in a statement. For fiscal 2020, Cracker Barrel expects EPS between $8.55 and $8.65. FactSet is guiding for EPS of $9.06. Cracker Barrel stock is up 5.4% over the last three months, but down 2.1% for the last year. The S&P 500 index SPX, -3.35% has gained 15.4% over the past 12 months.