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Highlights
- Canadian Tire Corporation (TSX: CTC, TSX: CTC.A) seems to have become one of the top trending stocks on the markets after it released its fourth-quarter and full-year results for fiscal 2021 on Thursday, February 17.
- The retail player saw its Class A shares jump up by about two per cent on Thursday to close at a value of C$ 188.68.
- CTC stock, on the other hand, closed at C$ 333 apiece on Thursday, having climbed by about 28 per cent in the past six months.
Canadian Tire Corporation (TSX: CTC, TSX: CTC.A) seems to have become one of the top trending stocks on the markets after it released its fourth-quarter and full-year results for fiscal 2021 on Thursday, February 17.
The retail player saw its Class A shares jump up by about two per cent on Thursday to close at a value of C$ 188.68. CTC stock, on the other hand, closed at C$ 333 apiece on Thursday, having climbed by about 28 per cent in the past six months.
Let’s find out how the retail player has performed financially.
Canadian Tire Corporation (TSX:CTC) financial performance in Q4 FY2021
The retail giant saw its consolidated revenue jump by 5.4 per cent year-over-year (YoY) to C$ 5.14 billion in the latest quarter. When excluding petroleum, its total revenue growth amounted to 2.8 per cent in Q4 2021.
Its 2021 full-year revenue grew 9.6 per cent YoY to C$ 16.29 billion. Its total annual revenue, excluding petroleum, was up 7.7 per cent YoY.
Also read: Is Nutrien (TSX:NTR) an agriculture stock to buy as its Q4 profit soars?
Canadian Tire said that its net income amounted to C$ 535.7 million in the fourth quarter of FY2021, up from C$ 521.8 million a year ago. Its 2021 full-year net income stood at C$ 1.26 billion, which was notably up from C$ 862.6 million in the previous year.
Its diluted earnings per share (EPS) expanded by five per cent YoY to C$ 8.34 in the latest quarter.
The Toronto-based company also announced an increased quarterly dividend of C$ 1.3 per share, scheduled on March 1, which was up from that of C$ 1.175 per share paid earlier.
Bottomline
Canadian Tire Corporation President and CEO Greg Hicks has commented that the retail company delivered "exceptional results" in Q4 FY2021 with “remarkable sales growth" for the second year in a row.
Mr Hicks also noted in the latest earnings report that Canadian Tire's inventory strategy, which is said to have helped its business stay afloat during supply chain bottlenecks in the past, is expected to help cap "shipping peaks".
The company is said to be following the same approach this year by placing early spring and summer orders and chartering its own cargo ships.
Also read: TD & Enbridge (ENB): TSX stocks to watch amid Canada's rising inflation
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
