Analyst forecasts point to 50%+ EPS growth for the Canadian small caps on our list
SmallCapPower | May 1, 2017: With earnings reports due out as early as tomorrow, we have identified those Canadian small caps that analysts expect to have significant growth in expected earnings per share, quarter over quarter. Kinaxis Inc. (TSX: KXS), for example, has been seeing increasing sales for its supply-chain planning platform, due to its superior forecasting capabilities. Considered by many to be the single most important variable in determining a stock’s price, earnings per share (EPS) is a valuation metric that refers to the portion of a company’s profit allocated to each outstanding share of common stock.
Tree Island Steel Ltd. (TSX: TSL) – $4.40
Iron & Steel
Tree Island Steel Ltd. is a Canada-based manufacturer and supplier of wire products for a range of applications engaged in making products from steel wire for a range of customers for industrial, construction, agricultural and specialty applications. The Company’s products include galvanized wire, bright wire, an array of fasteners, including packaged, collated and bulk nails, stucco reinforcing products, concrete reinforcing mesh, fencing, and other fabricated wire products. The Company markets products under the Tree Island, Halsteel, K-Lath, Industrial Alloys, TI Wire and Tough Strand brand names.
- Market Cap: $136.4 million
- Analyst Mean EPS Estimate (FQ1): $0.08
- Expected Growth in EPS: 650%
- Next Report Date: 04/05/2017
Lucara Diamond Corp. (TSX: LUC) – $3.17
Non-Gold Precious Metals & Minerals
Lucara Diamond Corp. is a diamond mining company focused in Africa. The Company’s business consists of the acquisition, exploration, development and operation of diamond properties. Its segments include Karowe Mine, and Corporate and other. The Company holds a 100% interest in the Karowe Mine and three prospecting licenses located in Botswana. The Karowe Mine is located in north-central Botswana and is part of the Orapa/Letlhakane Kimberlite district. The kimberlite at the Karowe Mine (the AK6 Kimberlite) consists of three distinct intrusions, which form a contiguous tri-lobate kimberlite pipe.
- Market Cap: $1,212.4 million
- Analyst Mean EPS Estimate (FQ1): $0.17
- Expected Growth in EPS: 339%
- Next Report Date: 02/05/2017
Richmont Mines Inc. (TSX: RIC) – $9.88
Gold
Richmont Mines Inc. is a mining company engaged in mining, exploration and the development of mining properties, principally gold. The Company operates gold mines at various sites in Quebec and Ontario. The Company’s segments include Quebec and Ontario. The Company is engaged in producing gold from the Island Gold Mine in Ontario and the Beaufor Mine in Quebec. The Island Gold mine is located 83 kilometers northeast of Wawa, Ontario.
- Market Cap: $625.6 million
- Analyst Mean EPS Estimate (FQ1): $0.08
- Expected Growth in EPS: 321%
- Next Report Date: 04/05/2017
Acadian Timber Corp. (TSX: ADN) – $17.92
Forest & Wood Products
Acadian Timber Corp. is a Canada-based supplier of primary forest products in Eastern Canada and the northeastern United States. The Company owns and manages approximately 761,000 acres of freehold timberlands in New Brunswick (New Brunswick Timberlands), approximately 299,000 acres of freehold timberlands in Maine (Maine Timberlands) and provides management services relating to approximately 1.3 million acres of Crown licensed timberlands. The Company operates through two segments: NB Timberlands and Maine Timberlands. The Company also owns and operates a forest nursery in Second Falls, New Brunswick. The Company’s products include softwood and hardwood saw logs, pulpwood and biomass by-products sold to approximately 100 regional customers.
- Market Cap: $299.8 million
- Analyst Mean EPS Estimate (FQ1): $0.29
- Expected Growth in EPS: 64%
- Next Report Date: 03/05/2017
Kinaxis Inc. (TSX: KXS) – $79.87
Software
Kinaxis Inc. is a provider of cloud-based subscription software for supply chain operations. The Company offers RapidResponse as a collection of cloud-based configurable applications. The Company’s RapidResponse product provides supply chain planning and analytics capabilities that create the foundation for managing multiple, interconnected supply chain management processes, including demand planning, supply planning, inventory management, order fulfillment and capacity planning. The Company’s customers include companies in various industries, including high technology and electronics; aerospace and defense; life sciences and pharmaceuticals; industrial, and automotive.
- Market Cap: $2,022.4 million
- Analyst Mean EPS Estimate (FQ1): $0.29
- Expected Growth in EPS: 54%
- Next Report Date: 02/05/2017
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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