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Highlights
- Canadian Tire Corporation Limited (TSX:CTC) has reported a decreased profit for its third fiscal quarter of 2021.
- Its annual dividend, on the other hand, noted an increase of 10.6 per cent.
- Ahead of the latest earnings release, Canadian Tire’s stocks were trading in green on Wednesday, November 10.
Canadian Tire Corporation Limited (TSX:CTC), a Toronto-based retail company, reported a decreased profit for its third fiscal quarter of 2021 before markets opened on Thursday, November 11.
But while its net income was down by 14.4 per cent year-over-year (YoY) to C$ 279.5 million in the quarter ending October 2, Canadian Tire’s annual dividend noted an increase of 10.6 per cent to C$ 5.2 per share.
Ahead of the latest earnings release, Canadian Tire’s stocks were trading in green on Wednesday, November 10, up by 0.37 per cent to C$ 312.06 apiece.
Let’s glance through Canadian Tire’s latest financials.
Canadian Tire Corporation (TSX:CTC) Q3 FY21 results
The retail giant, which sells all from home goods, clothes to vehicle fuel, said on Thursday that its retail sales had surged by 4.3 per cent YoY to C$ 4.6 billion in Q3 FY21.
Its revenue, however, had slipped by 1.8 per cent YoY from C$ 3.98 billion in Q3 FY20 to C$ 3.91 billion in the latest quarter.
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Canadian Tire’s diluted earnings per share (EPS), on the other hand, declined by 18 per cent from C$ 4.84 apiece in Q3 FY20 to that of C$ 3.97 apiece in the third fiscal quarter this year.
On the dividend front, the Toronto-based retail chain’s shareholders are now set to receive a quarterly payout of C$ 1.3 per share, which is up from the previous dividend of C$ 1.175 apiece.
The company noted in its latest quarterly report that Canadian Tire Retail’s (CTR) comparable sales climbed by 1.4 per cent YoY in Q3 FY21, as against the notable surge of 25.1 per cent YoY in Q3 FY20.
Canadian Tire Corporation stock performance
Stocks of Canadian Tire Corporation rose by nearly 13 per cent in the last one year. In 2021, the retail scrip has noted a growth of over 11 per cent so far.
More recently, the retail stock saw its price surge by nearly six per cent in November, while it climbed by a little more than three per cent in the last one year.
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Canadian Tire last recorded a 52-week high on 13 May 2021, at a price of C$ 213.8 apiece, from which point it has dipped by about 13 per cent.
The retail company also presently holds a price-to-earnings (P/E) ratio of 15 and a return on equity (ROE) of 27.92 per cent.
Bottom line
Despite its lower profit in the latest quarter, Canadian Tire’s President and CEO Greg Hicks noted that the company is on its course to save an additional C$ 100 million through 2022. Mr Hicks also added that the company expects to buy back up to C$ 400 million worth of its shares by the end of next year.
Taking all things into consideration, investors should rely on their own thorough research and judgment before investing in a stock.
