Last week, Bank of Montreal (NYSE: BMO), one of Canada's oldest and largest banks, reported growth in its fiscal fourth-quarter earnings. But it may be the only one that does, as at least two of the Canadian banks scheduled to report fourth-quarter numbers this week have already released preliminary results that warn of lower earnings due to debt write-downs and trading losses.
Analysts surveyed by Thomson Reuters expect Toronto-based Canadian Imperial Bank of Commerce (NYSE: CM) to post earnings 42.6% lower than a year ago, or $1.28 per share. CIBC beat estimates by a penny in the third quarter, but missed by a penny in the period before that. The bank faces a class-action lawsuit related to investments in collateralized debt obligations consisting of U.S. subprime mortgages. Shares have climbed 20.7% from a recent 52-week low of $39.52, but are down 37.8% in the past three months.
Toronto Dominion Bank (NYSE: TD), Bank of Nova Scotia (NYSE: BNS), and Royal Bank of Canada (NYSE: RY) are expected to report more modest earnings declines of $1.01 per share, $0.73 per share, and $0.83 per share, respectively. All three Toronto-based banks topped estimates in the third quarter. Toronto Dominion and RBC have recently announced plans to offer shares in order to raise capital. Toronto Dominion and Scotiabank have been trading near 52-week lows, and their share prices are down around 39% in the past three months. But only Toronto Dominion has a consensus buy recommendation from analysts.
U.S. homebuilders Beazer Homes USA (NYSE: BZH) and Toll Brothers Inc. (NYSE: TOL) are also scheduled to report fiscal fourth-quarter results this week, and both are expected to have narrowed their net losses despite the ongoing housing slump and credit crunch. Analysts are looking for Beazer to post a loss of $2.10 per share, compared to $3.20 per-share loss a year ago, on revenue of $593.4 million (-46.1%). The Atlanta-based company has reported deeper than expected losses in recent quarters, however. Shares have been trading near a multiyear low of $1.13, and the share price is 74.0% lower it was than three months ago. Toll Brothers is expected to post a loss of $0.39 per share, compared to $0.52 per-share loss a year ago, on revenue of $681.4 million (-41.7%). The luxury home builder's results have been better than expected in most recent quarters. Shares are up from a recent multiyear low of $13.55, but down 19.9% from three months ago.
Analysts anticipate that Sears Holdings Corp. (NASDAQ: SHLD), the third largest retailer in the U.S., will have swung to a loss of $0.49 per share in the third quarter, compared to a profit of $0.01 per share a year ago. Revenues are expected to be 5.3% lower than a year ago, or $10.9 billion. The quarter saw some management changes, which followed a restructuring of the company earlier in the year. Yet, Sears still could take a significant hit if the holiday season is disappointing. Sears has missed expectations in the past four quarters, and shares have tumbled 60.6% in the past three months.
Last week, Hormel Foods Corp. (NYSE: HRL) reported that a decline in quarterly earnings due to rising commodities prices. This week, meat producers Sanderson Farms Inc. (NASDAQ: SAFM) and Smithfield Foods Inc. (NYSE: SFD) are expected to report swinging to losses of $0.58 and $0.08 per share, respectively, as they also face rising crop prices. San Francisco-based Del Monte Foods Co. (NYSE: DLM) is expected to report an earnings decline of 14.3% in its fiscal second quarter, but nut and snack producer Diamond Foods Inc. (NASDAQ: DMND) is expected to post profits that are 16.1% higher, after the completion of its acquisition of the Pop Secret Brand. While Sanderson, Smithfield, and Del Monte recently fell to 52-week lows, Diamond recently hit a 52-week high.
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Reader Comments (Page 1 of 1)
12-15-2008 @ 8:54PM
Paul Fraser said...
RBC Bank President Gordon Nixon - Salary $11.73 Million
$100,000 - MISTAKE (FISHERMEN'S LOAN)
I'm a commercial fisherman fighting the Royal Bank of Canada (RBC Bank) over a $100,000 loan mistake. I lost my home, fishing vessel and equipment. Help me fight this corporate bully by closing your RBC Bank account.
There was no monthly interest payment date or amount of interest payable per month on my loan agreement. Date of first installment payment (Principal + interest) is approximately 1 year from the signing of my contract.
Demand loan agreements signed by other fishermen around the same time disclosed monthly interest payment dates and interest amounts payable per month.The lending policy for fishermen did change at RBC from one payment (principal + interest) per year for fishing loans to principal paid yearly with interest paid monthly. This lending practice was in place when I approached RBC.
Only problem is the loans officer was a replacement who wasn't familiar with these type of loans. She never informed me verbally or in writing about this new criteria.
Phone or e-mail:
RBC President, Gordon Nixon, Toronto (416)974-6415
RBC Vice President, Sales, Anne Lockie, Toronto (416)974-6821
RBC President, Atlantic Provinces, Greg Grice (902)421-8112 mail to:greg.grice@rbc.com
RBC Manager, Cape Breton/Eastern Nova Scotia, Jerry Rankin (902)567-8600
RBC Vice President, Atlantic Provinces, Brian Conway (902)491-4302 mail to:brian.conway@rbc.com
RBC Vice President, Halifax Region, Tammy Holland (902)421-8112 mail to:tammy.holland@rbc.com
RBC Senior Manager, Media & Public Relations, Beja Rodeck (416)974-5506 mail to:beja.rodeck@rbc.com
RBC Ombudsman, Wendy Knight, Toronto, Ontario 1-800-769-2542 mail to:ombudsman@rbc.com
Ombudsman for Banking Services & Investments, JoAnne Olafson, Toronto, 1-888-451-4519 mail to:ombudsman@obsi.ca
http://www.corporatebully.ca
http://www.youtube.com/CORPORATEBULLY
http://www.p2pnet.net/story/17877
"Fighting the Royal Bank of Canada (RBC Bank) one customer at a time"