Stocks in action: Laurentian Bank, Delta

Here is a selection of announcements that have moved (or will move) the prices of these companies:

(Come back to read us from time to time
so as not to miss an update)

Laurentian exceeds expectations

The action of the Laurentian Bank ($41.66) jumped almost 8% after the unveiling of financial results that were well above expectations on Wednesday. Even if the financial institution increases its reserves in case the economy deteriorates, its president and chief executive, Rania Llewellyn, believes that the objectives set for 2022 will be met. The bank is always developing assumptions to prepare for different economic scenarios. Management revised its pessimistic scenario to take into account a potential deterioration in the economy.

“That’s why we’ve increased our loss provisions,” Llewellyn said during a call to discuss second-quarter results. It’s a way of carefully managing what might be on the horizon. This is also the reason why we have put our share buyback program on hold.” Despite this caution, the leader believes that the objectives for 2022 are still achievable. “I wouldn’t have said we have confidence to exceed our targets, if we weren’t confident in our ability to manage this volatile economic environment.”

During the quarter ended April 30, the bank released results well above analysts’ expectations. Its adjusted net income rose 8.6% to $61.6 million, representing earnings per share of $1.39. Prior to the earnings release, analysts were instead anticipating adjusted earnings per share of $1.15. Analyst Gabriel Dechaine of National Bank Financial said the outperformance was largely attributable to lower-than-expected expenses (15 cents per share) and higher-than-expected earnings (13 cents per share).

Delta expects to return this quarter to 2019 revenue

The American company Delta (DAL, US$39.90) said on Thursday it expects to return to 2019 revenue this quarter as strong demand helps offset rising costs, including jet fuel. However, the group plans to offer fewer seats for sale over the period, in order to retain more leeway in the event of unforeseen events.

Delta still had to cancel more than 700 flights between Friday and Monday, the long weekend in the United States, after several hundred more flights were canceled the previous two weekends. Despite the risk of disruption, demand for airline tickets is not weakening.

On the contrary, it increases as the quarter progresses both for tourist flights in the United States and internationally and for business travel, Delta points out in a stock exchange document. Prices rise accordingly, boosting the company’s turnover. The company previously expected its revenues to show a decline of 3% to 7%.

At the same time, per-seat costs are expected to increase by 20% to 22% (vs. 17% previously forecast), with Delta blaming the rise in part on higher spending on ticket sales and ensuring its flights arrive. on time. The company also expects jet fuel costs of $3.60 to $3.70 per gallon, down from $3.20 to $3.35 previously.

Delta has, despite everything, raised the lower range of its operating margin, now expected between 13% and 14%, against 12% and 14% previously. This remains between 3 to 4 percentage points lower than in 2019.

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