Market movers: Stocks seeing action on Wednesday - and why

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A look at North American equities heading in both directions

, banking on resilient demand for groceries and discounts to attract inflation-hit consumers.

In a research note released before the bell, Desjardins Securities analyst Chris Li said: “The top line was strong, with same-store sales ahead of our estimates across all businesses. This was partly offset by slightly softer Retail gross margin, while the SG&A expense rate was in line. Management expects full-year 2022 adjusted EPS growth in the high-teens percentage . We estimate this implies EPS of $1.56–1.61 for 4Q , slightly below our $1.63 estimate and consensus of $1.68.

Desjardins Securities’ Chris Li said: “The top line was strong, with same-store sales ahead of our estimates in both Food and Pharmacy. In terms of the outlook for FY23, the company expects to continue facing market uncertainties, labour shortages and elevated levels of cost inflation; it is difficult to predict how this macroeconomic environment will evolve. The company remains focused on its merchandising programs and private label offer, and on working with its supply chain partners.

 

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