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EPS of $0.88 beat estimates of $0.8209 and revenues of $283.51M beat estimates of $276.84M. Net income available to shareholders was $83M, an increase of 19% compared to the prior quarter. Management noted its strong financial results were driven by branch-raised deposit growth, improved sales, and discipline on managing expenses. Its annual loan growth of 6% led net interest income higher by 5%, and overall the market was pleased with these results. Management expects mid single-digit percentage growth in loans and low single-digital percentage growth in branch-raised deposits growth for FY2023. There are some concerns on the economy ahead from management, however, it believes its prudent lending approach and expense management will help to offset some of this weakness. Overall this was a decent quarter for the company.
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WPK is a bit of a 'sleeper'. It has $450M net cash, and is 53% owned by its parent. The stock is cheap. Looking at consensus estimates, EPS growth is really expected to slow down, and is essentially going to be flat next year. Expectations are for sales +5% and EPS to go from $2.33 to $2.34. Assuming nothing else happens, it looks like the 'ramp up' is likely over.
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IMAX has been around a very long time, and even had takeover overtures a couple of decades ago. But it hasn't created much value. The stock is about 1/3rd the level of ten years ago. It is not too expensive (but not cheap) at 23X earnings. It has a good global brand and is recovering well from the pandemic. But debt is high, at about 4X cash flow. It showed 8% revenue growth in the 2Q, but this was a sharp deceleration from Q1, as many blockbuster movies disappointed. Q3 'should' be a bit better. EPS did beat expectations. Insiders own 17%. It is hard to get excited here. It remains at the mercy of the movie slate, and with the writer's strike the outlook is probably not great. We would consider it a weak hold, with debt and lack of value creation the main offsets.
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Registered Retirement Savings Plan (RRSP):
The RRSP is a cornerstone of retirement planning in Canada. It allows individuals to contribute a portion of their income on a pre-tax basis, reducing their taxable income for the year. The funds within the RRSP grow tax-free until withdrawal. However, withdrawals are taxed at the individual's marginal tax rate at the time of withdrawal. RRSPs are particularly advantageous for individuals in higher tax brackets who anticipate being in a lower tax bracket during retirement.
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Buy in tranches with each increase of 0.25% in interest rates. Likes DLR.