Canadian Tire Q3 adjusted EPS beats estimates; raises dividend

Overview

• Canada retail and financial services firm's Q3 adjusted EPS beat analyst expectations

• Q3 adjusted net income and adjusted pretax profit both beat analyst expectations

• Company raised annual dividend to C$7.30 per share, 17th consecutive yearly increase

Outlook

• Canadian Tire expects 2026 full-year operating capital expenditures of C$450 mln to C$500 mln

• Company maintains total operating capital investment target of C$2 bln for 2025-2028 period

Result Drivers

• RETAIL SALES GROWTH - Retail comparable sales rose 3.2%, led by Petroleum and supported by growth across all banners, with eCommerce sales up 15.3% and loyalty sales up 6.3%

• FINANCIAL SERVICES PROFITABILITY - Improved Financial Services segment profitability on record revenue, as higher revenue and gross margin offset increased funding costs and planned investments, with stable credit metrics

• COST MANAGEMENT - Higher retail income before taxes reflected revenue growth, margin performance and disciplined cost management

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the department stores peer group is "buy."

• Wall Street's median 12-month price target for Canadian Tire Corporation Ltd is C$207.00, about 1% above its November 11 closing price of C$204.97

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Nov 10 - Canada's Pet Valu Q3 revenue beats estimates on retail sales; lifts outlook

• Nov 10 - Grocery Outlet Q3 adjusted EBITDA misses estimates, cuts FY guidance

• Nov 10 - B&G Foods Q3 sales beat estimates on acquisitions, volume growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)