2 TSX Stocks Poised for Massive Earnings Boost

As the TSX earnings season comes to a close, markets are starting to calm down a bit. Most of the big players have already shared their numbers, leaving fewer surprises and less market drama. This is a time when investors can catch their breath, review the latest results, and maybe even start thinking about the next round of earnings reports. So while the stock may be slowing, it’s a great time to reassess and plan for the future! And that’s exactly what we’re doing today, with two TSX stocks still poised to post another earnings boost just before the season ends.

Delayed on the couch

How Couche-Tard catering (TSX:ATD) is gearing up to report earnings, investors should brace for a report that will be just as dynamic as the company’s recent strategic moves. The convenience store giant has been busy on multiple fronts, from its recent friendly bid for Seven & i Holdings to its definitive agreement to acquire GetGo Café + Markets. While these acquisitions underscore Couche-Tard’s ambitious growth strategy, the company’s financials could show some stress due to ongoing economic pressures and recent investments.

Investors may see some softer numbers in the upcoming earnings report, particularly due to a weaker gross margin on U.S. trucking fuel and the impact of a one-week shorter fiscal quarter compared to last year. However, despite these headwinds, Couche-Tard has shown resilience, focusing on cost control and strategic expansions, including a recent stock buyback program. The addition of innovative GetGo stores to the portfolio is expected to bolster long-term growth, even if the immediate financial impact has not yet been fully realized.

Looking ahead, Couche-Tard’s leadership shakeup, with Alex Miller taking over as CEO on September 6, adds another layer of intrigue. Investors will be eager to see how this new chapter unfolds, especially as the company continues to navigate economic challenges while pursuing aggressive growth through acquisition. Given these factors, the upcoming earnings release will likely provide a mix of near-term challenges and long-term potential for this global convenience giant.

North-West Company

How North-West Company (TSX:NWC) is also preparing to report its earnings, investors should be prepared for mixed results, reflecting the company’s ongoing efforts to balance growth with rising costs. NWC reported solid earnings in the previous quarter, with sales increasing 4.0%, driven by strong same-store sales and new store additions. However, rising costs, particularly due to inflation and higher payroll costs, were a challenge, slightly reducing the company’s profitability.

This upcoming earnings report will likely underscore NWC’s focus on operational excellence, a strategy that has helped the company navigate a challenging economic landscape. The company’s commitment to being in the warehouse and delivering value to its customers has been a key driver of its recent performance, and investors can expect further efforts in this area. However, the impact of cost inflation and the company’s investment in new stores could weigh on margins, making this a key area to watch.

Looking ahead, investors should also pay attention to NWC’s strategic initiatives and how they are setting the stage for future growth. While the immediate outlook may be tempered by cost pressures, the company’s expansion efforts and focus on efficiency should provide a solid foundation for long-term success. With a steady dividend yield of 3.42% and a history of growth, NWC remains an attractive option for investors looking for stability in their portfolios.