Amber Kanwar’s Insights: Key Trends in Shopify, Bombardier, and Canadian Lifeco Earnings
As we venture into the winter of 2025, Canadians are facing extreme cold temperatures. However, as the sun sets later each day, the anticipation of spring is palpable. This week is particularly noteworthy, with earnings reports from 48 companies on the Toronto Stock Exchange and 79 firms in the S&P 500. Here’s a detailed overview of the significant trends and highlights to watch:
Shopify’s Performance Amid Sector Challenges
Shopify is set to report its earnings this Wednesday. The firm has faced considerable challenges within the software sector, which has seen significant declines. The S&P 500 Software Index has fallen nearly 30% over the past four months. Shopify’s stock has underperformed as well, dropping 40% during this period.
Despite these challenges, expectations remain high for Shopify’s upcoming results. Analysts predict a top-line growth of approximately 28% and an earnings per share increase of 50%. CIBC Capital Markets analyst Todd Coupland highlights that recent web traffic for Shopify Plus merchants has seen acceleration. Coupland believes that Shopify’s higher profit growth potential and lower tariff risks justify its current valuations.
Insights on Canadian Lifecos: A Difficult Year Ahead
Canadian lifecos, including Sun Life, Manulife, and Great-West Life, are anticipated to report their earnings this week as well. The sector has underperformed compared to the wider financial market and the S&P/TSX Composite Index in 2025. Sun Life, in particular, has faced challenges due to high-cost medical claims in its U.S. health-care insurance program.
National Bank analyst Gabriel Dechaine noted that improvements in Sun Life’s U.S. Group businesses could significantly boost performance. Moreover, the company is enhancing its share buyback activity, which could also act as a positive catalyst for its stock.
Quick-Service Restaurants Anticipate Strong Sales
This week, quick-service restaurants like McDonald’s and Burger King will announce their earnings. Analysts are particularly optimistic about McDonald’s, which recently reached a record high, largely due to successful promotional collaborations like the Grinch Meal. Stifel analyst Chris O’Cull emphasizes the importance of assessing the sustainability of this momentum in upcoming sales reports.
Restaurant Brands International, the parent company of Tim Hortons and Burger King, will also report results, potentially benefiting from a SpongeBob movie partnership.
Bombardier: Navigating Trade Tensions
Bombardier is set to announce its earnings amidst ongoing tensions between Canada and the U.S. In the past, threats from U.S. officials to impose tariffs on Bombardier jets created volatility for the company. However, National Bank Financial analyst Cameron Doerksen remains optimistic, citing positive market conditions for Bombardier’s business jet and defense segments.
U.S. Jobs Report: Anticipation and Concerns
The U.S. is poised to release delayed job data for January this Wednesday. Economists foresee the addition of about 70,000 jobs, a rise from December’s 50,000. Nevertheless, several indicators suggest a troubling trend in the labor market, with layoffs peaking for January since 2009 and job openings falling to their lowest levels since 2020.
Scott Anderson, BMO’s chief U.S. economist, expresses concern over the disconnect between economic growth and employment. This could lead to a significant impact from the forthcoming employment report.
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