John's Feed
Feb 17, 2011

Jean Coutu sees eventual benefit in Quebec changes

TORONTO, Feb 17 (Reuters) – Canada’s Jean Coutu Group Inc
(PJCa.TO: Quote, Profile, Research) expects growth in the volume of generic drug sales at
its pharmacy chain to compensate over time for changes in
government programs designed to lower prices.

Reforms put into effect last year by Quebec’s provincial
government will drive more sales of generic drugs in the long
term, said Francois Coutu, chief executive of Longueuil-based
Jean Coutu, which mostly operates in the French-speaking
province.

Feb 10, 2011

Canadian Tire profit rises, misses estimates

TORONTO, Feb 10 (Reuters) – Canadian Tire Corp (CTC.TO: Quote, Profile, Research, Stock Buzz)
(CTCa.TO: Quote, Profile, Research, Stock Buzz) said on Thursday quarterly earnings rose on improved
margins and lower interest costs, but the retailer missed
analyst forecasts because of a tax reporting change.

The company, which operates 482 Canadian Tire stores,
reported a 2.4 percent rise in consolidated retail sales. But
sales at stores open a year or longer, a key measure for
retailers, fell 0.4 percent.

Jan 26, 2011

Analysis: Lululemon’s red-hot stock may face risks

TORONTO (Reuters) – Lululemon Athletica Inc’s (LLL.TO: Quote, Profile, Research, Stock Buzz) (LULU.O: Quote, Profile, Research, Stock Buzz) shares, trading at a big premium to peers, could falter if the yogawear retailer’s sizzling growth shows signs of cooling.

While growth is not likely to slip soon, it’s far from certain how long the company can keep up its breakneck pace of expansion, with the outlook depending heavily on the Canadian company’s fate in the U.S. market.

Jan 24, 2011

RioCan REIT, Tanger in C$1 bln joint venture

TORONTO, Jan 24 (Reuters) – RioCan Real Estate Investment
Trust (REI_u.TO: Quote, Profile, Research, Stock Buzz) (REI_u.TO: Quote, Profile, Research, Stock Buzz) announced plans on Monday for a C$1
billion ($1 billion) joint venture to develop outlet malls in
Canada with U.S.-based Tanger Factory Outlet Centers (SKT.N: Quote, Profile, Research, Stock Buzz).

The deal comes as U.S. companies, struggling with a weaker
market at home, line up for retail space in Canada, which
suffered less in the global recession. Top U.S. brand names are
also seeking exposure in Canadian cities.

Jan 6, 2011

Valeant sees strong results, shares jump 15 pct

TORONTO, Jan 6 (Reuters) – Valeant Pharmaceuticals
International (VRX.TO: Quote, Profile, Research, Stock Buzz) on Thursday said it expected to report
quarterly results that could exceed what analysts on average
had expected and issued a 2011 outlook that topped their
forecasts.

Shares of the Canadian drugmaker jumped 15 percent after
the announcement. With Thursday’s gains, the stock has more
than doubled since last June, when Biovail said it would buy
U.S.-based Valeant for $3.3 billion and assume the Valeant
name.

Nov 4, 2010

MetroPCS goes nationwide in quest for growth

BANGALORE, Nov 4 (Reuters) – MetroPCS Communications Inc
(PCS.N: Quote, Profile, Research, Stock Buzz) reported quarterly results that edged past market
estimates and the low-cost wireless carrier said it will take
its services nationwide, sending its shares up 5 percent to a
year-high.
The Metro USA nationwide service launched on Thursday will
cover more than 90 percent of the U.S. population, and is
expected to fuel subscriber growth.

The Richardson, Texas-based company’s wireless service
currently serves the big cities, including key markets New
York, Los Angeles, Boston and Philadelphia.

Nov 3, 2010

Garmin’s PND unit drags profit down; cuts FY outlook

BANGALORE, Nov 3 (Reuters) – Slow growth at newer business
lines and a steeper-than-expected fall in revenue from portable
navigation devices (PND) prompted Garmin Ltd (GRMN.O: Quote, Profile, Research, Stock Buzz) to cut
its full-year forecast, sending its shares down 8 percent.

“One has to dig pretty deep to find the silver linings in
this print,” Oppenheimer analyst Yair Reiner said in an email.

Nov 1, 2010

Cognizant Q3 beats, but growth lags main rivals

BANGALORE, Nov 1 (Reuters) – Cognizant Technology Solutions
Corp (CTSH.O: Quote, Profile, Research, Stock Buzz) trailed its main rivals even as it posted a
second straight quarter of double-digit sequential revenue
growth, knocking its shares down 3 percent.

But Chief Financial Officer Gordon Coburn predicted
Cognizant, whose clients include 3M (MMM.N: Quote, Profile, Research, Stock Buzz) and Harris Corp
(HRS.N: Quote, Profile, Research, Stock Buzz), would outpace the market — main rivals include
Infosys Technologies (INFY.BO: Quote, Profile, Research, Stock Buzz) and Tata Consultancy Services
(TCS.BO: Quote, Profile, Research, Stock Buzz) — this year.

Oct 29, 2010

Sure to beat on Q3, but will Cognizant top rivals?

BANGALORE, Oct 29 (Reuters) – Cognizant Technology
Solutions Corp (CTSH.O: Quote, Profile, Research, Stock Buzz) should post strong quarterly results
and raise its 2010 outlook for the third straight quarter, as
it gains market share and benefits from a rebound in financial
services. Analysts want to see if the economic recovery has sustained technology spending on financial services, which contributed 43 percent to Cognizant's revenue in the second quarter. Investors will focus more on whether the New Jersey-based IT services provider -- which competes with India's Tata Consultancy Services (TCS.BO: Quote, Profile, Research, Stock Buzz) and Infosys Technologies (INFY.BO: Quote, Profile, Research, Stock Buzz) as well as U.S. rivals Accenture (ACN.N: Quote, Profile, Research, Stock Buzz), Hewlett-Packard (HPQ.N: Quote, Profile, Research, Stock Buzz) and IBM (IBM.N: Quote, Profile, Research, Stock Buzz) -- beats estimates by a big margin, especially on revenue, as they look for double-digit sequential growth. While Wall Street analysts on average predict sequential revenue growth of 6 percent, investors expect 12-15 percent, according to some analysts. The company faces a stiff comparison on two counts. Its second quarter was a record, and the September quarter is historically strong for its Indian rivals. TCS posted 12 percent sequential growth based on U.S. GAAP, while Infosys saw quarter-on-quarter growth of 10.2 percent. "Cognizant's expectations have been heightened by strong growth results recently reported by Infosys and TCS," Sanford C. Bernstein analyst Rod Bourgeois said, adding sequential growth of 10 percent is feasible for Cognizant. In the second quarter, Cognizant posted sequential revenue growth of 15 percent, outperforming its peers, and recording $1 billion in a quarter for the first time. The stock is up 22 percent since its second-quarter results, topping a 5 percent rise in the broader S&P 500 index .SPX. RAISING THE BAR The general sentiment is that a beat alone is not enough to push up the shares, but the sell-side is increasingly conscious of the bar being raised again and again. "I'm seeing investors increasingly concerned about higher expectations facing Cognizant," said Bourgeois. In the last four quarters, Cognizant shares have risen an average of 6 percent when it reported results. The company has beaten profit estimates for the last six straight quarters. "They'll do enough to keep the stock in their current range," said UBS analyst Jason Kupferberg. The stock, valued at around $20 billion, this week touched $68.87, its highest since it went public in 1998. The market will also be looking for signs of demand and growth next year -- though Cognizant typically begins budget talks with clients in November and unveils its full-year outlook only in February. "With budgets for next year still not set, visibility on 2011 top-line growth is going to be low. But we like Cognizant's momentum," said Bryan Keane, analyst at Credit Suisse. With revenue expected to grow about 36 percent this year, according to analysts, growth is likely to settle at more moderate levels in 2011. Analysts predict 2011 revenue growth of 23 percent, according to Thomson Reuters I/B/E/S. ------------------------------- Q3 2010 Q3 2009 Pct change ------------------------------- EPS $0.60 $0.45 +33 Revenue (bln $) 1.18 0.85 +38 Gross margins 42.44 44.28 -4 (Reporting by S. John Tilak in Bangalore, Editing by Ian Geoghegan)

Oct 21, 2010

Polycom profit tops estimates on robust voice growth

BANGALORE, Oct 21 (Reuters) – U.S. video conferencing
company Polycom Inc (PLCM.O: Quote, Profile, Research, Stock Buzz) beat quarterly profit estimates,
helped by strong growth at both its voice and video businesses,
showing it was holding on to its turf in an increasingly
crowded market.

Polycom, which mainly competes with Cisco Systems Inc
(CSCO.O: Quote, Profile, Research, Stock Buzz) unit Tandberg, has beaten or matched profit estimates
for the last eight quarters. (Graphic:
r.reuters.com/duk69p)