Canadian Tire (TSE:CTC) Releases Quarterly Earnings Results

Canadian Tire (TSE:CTC) posted its quarterly earnings results on Thursday. The company reported C$4.27 EPS for the quarter, FiscalAI reports. Canadian Tire had a return on equity of 11.48% and a net margin of 4.09%. The business had revenue of C$4.32 billion during the quarter.

Here are the key takeaways from Canadian Tire’s conference call:

• Canadian Tire reported normalized diluted EPS of CAD 4.27, up 13%, with comparable sales rising 3.2% across all three retail banners. Results benefited from broad-based sales growth and cost discipline, as well as a lower share count and favorable blended tax rate.
• Digital and loyalty initiatives supported customer engagement and reported market-share gains. CTR e-commerce sales rose 25%, while loyalty sales and traffic increased 6% and 3.6%, respectively; management also said new-format stores and omnichannel capabilities are beginning to deliver results.
• Management said Q4 started slower, with winter weather yet to arrive, and the company faces a strong comparison that included favorable weather and an extra week. It expects Q4 pressure on gross margin and SG&A, citing transportation costs, promotional investment, expense timing and the loss of last year’s restructuring savings benefit.
• Financial Services delivered record revenue and 18% growth in income before tax, with aging and the net write-off rate broadly stable year over year. Management expects further profitability improvement if credit conditions remain stable, while noting that insolvencies remain difficult to predict.
• Canadian Tire raised its annual dividend to CAD 7.30 per share, marking its 17th consecutive annual increase, and said it had completed nearly 80% of its CAD 400 million 2026 share-repurchase plan. The company expects to finish the buyback by year-end.

Canadian Tire Stock Performance

Canadian Tire stock traded up C$10.00 during midday trading on Thursday, reaching C$226.00. 714 shares of the company’s stock were exchanged, compared to its average volume of 503. The stock’s 50-day simple moving average is C$211.11 and its 200 day simple moving average is C$215.02. The firm has a market cap of C$11.79 billion, a price-to-earnings ratio of 17.88, a P/E/G ratio of 0.49 and a beta of 0.77. The company has a debt-to-equity ratio of 91.32, a quick ratio of 1.15 and a current ratio of 1.88. Canadian Tire has a 52 week low of C$200.01 and a 52 week high of C$250.50.

Analyst Upgrades and Downgrades

Separately, National Bank Financial boosted their target price on shares of Canadian Tire from C$209.00 to C$214.00 and gave the stock a “sector perform” rating in a report on Monday, November 2nd. One analyst has rated the stock with a Strong Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of C$214.00.

About Canadian Tire

Canadian Tire Corporation, Limited, (TSX: CTC.A) (TSX: CTC) or ‘CTC’, is a group of companies that includes a Retail segment, a Financial Services division and CT REIT. Our retail business is led by Canadian Tire, which was founded in 1922 and provides Canadians with products for life in Canada across its Living, Playing, Fixing, Automotive and Seasonal & Gardening divisions. Party City, PartSource and Gas+ are key parts of the Canadian Tire network. The Retail segment also includes Mark’s, a leading source for casual and industrial wear; Pro Hockey Life, a hockey specialty store catering to elite players; and SportChek, Hockey Experts, Sports Experts and Atmosphere, which offer the best active wear brands.