It was a busy week with over twenty companies across the three portfolios reporting their quarterly earnings (this coming week is worse). Lots of press releases to read and sift through the spin, but overall, most of the companies are doing fine. One of the benefits of a buy and hold philosophy is I do not put a lot of weight on one quarter’s (three-month period) performance. I look for anything glaring in the reports to be aware of and move on. Speaking of moving on, lets look at the week that was …
Market News
Another strong week for the four major North American markets as the October rally continues into November. The Toronto Stock Exchange (TSX) got back on the positive side with nearly a 2% gain, setting a record high on Friday. The TSX was propelled higher by a decent employment report, the curbs lifted on financial institutions ability to increase their dividends, upbeat quarterly earning reports, and higher oil prices.
In the US, it is a fifth straight week of weekly gains for the S&P 500, Dow Jones Industrial Average (DJIA) and NASDAQ Composite (Nasdaq) Indexes, with each of them closing this week at record highs. The three Indexes were lifted by positive news regarding Pfizer’s Covid-19 anti viral pill tests; airlines, cruise lines and other travel companies that rose as a result of people being expected to travel more now that a Covid-19 pill is available; a US Labor Department report showing increased employment; strong corporate earnings; and higher energy stocks lifted by the rise in oil prices. A strong week of third quarter earnings seems to have rewarded companies that beat estimates and increased their outlook going forward while investors punished companies that missed their estimates.
Portfolio News
Another good week for all three portfolios with a third consecutive positive week for portfolios 1 & 2, and the fourth consecutive week for portfolio 3. Not as good as the American Indexes but any positive week is a good week.
Companies on the Radar
Rivian anticipates its shares going public on November 9 in the range of US$ 72 – US$ 74. Other than Rivian, no other companies came across my radar this week. Most of the time was spent reading Quarterly reports. I’m keeping an eye on Roku (NASD:ROKU), and Nvidia (NASD:NVDA) otherwise the radar was quiet this past week.
Portfolio Update
Portfolio 1
Portfolio 1 for the week ended November 5, 2021: UP 
I like buying stocks in complimentary combinations such as FuboTV and Visa. FuboTV is the more volatile, high growth company with lots of opportunity. Visa is a mature company with decent growth, tremendous opportunity, and provides a bit of dividend. Both are technology companies so there is little diversification other than a young company and a mature company. I am OK with that since both are in large and expanding markets, FuboTV in streaming TV and Visa in payment processing.
Activity
Bought: FuboTV (NYSE:FUBO) This is the second purchase of Fubo in less than a year. While the share price has only gone up approximately 20%, I feel the business has improved since the initial purchase. As the business grows, the share price typically follows. Even though the share price was higher for this second purchase, the price to sales ratio (where price is the numerator and sales is the denominator) was better on this purchase than on the initial investment. This means the sales must be better to get a lower number. It is costing me less for each dollar of FuboTV’s sale (which is what I want).
A couple of things led to this second purchase. I looked at the second quarter presentation, and it showed a growing number of paid subscribers and advertising revenue. The tipping point was seeing FuboTV ads on cable TV. I take it as a positive sign for the company if FuboTV is expanding into Canada and advertising on Canadian cable networks.
Bought: Visa (NYSE:V) This is the second purchase of Visa. While Visa does not come to mind as a top growth company, Visa is the global leader in payments technology and is part of the financial technology industry that is waging a ‘war on cash’ (movement towards a cashless society) and changing the way people pay for products and services.
Dividends
Dividends Received this week for the following companies:
Companies followed by DRIP (Dividend Re-Investment Plan) indicate additional shares were purchased with the dividend. Any cash leftover was added to the cash balance.
Canadian $
Toronto-Dominion Bank (TSX:TD)
US $
No US$ dividends this week.
Quarterly Reports
CargoJet Inc. (TSX:CJT)
Selected highlights from their third quarter 2021 financial statements on November 1, 2021
- Total Revenues for the quarter were $189.5 million compared to third quarter 2020 Revenues of $162.3 million, an increase of 16.8%
- Domestic Network Revenue for this quarter accounted for less than 42% of total revenues compared to over 54% for the same quarter in 2019
- Adjusted Free Cash Flow was $51.1 million for the three-month period ended September 30, 2021, compared to $59.3 million for the same period in 2020.
Viemed Healthcare Inc. (TSX:VMD)
Selected highlights from their third quarter 2021 financial statements on November 1, 2021
- Third quarter revenue of $29.3 MILLION
- Total net revenues for fourth quarter of 2021 are estimated to be approximately $29.3 m to $30.5 m.
Lattice Semiconductor Corp. (NASD:LSCC)
Selected highlights from their third quarter 2021 report on November 2, 2021
- Revenue increases 28% compared to Q3 2020 and 5% compared to Q2 2021
- A year-over-year increase in net income of 112% on a GAAP basis
- Achieved record operating profit of 20.5% on a GAAP basis
- Lattice Wins 2021 Sustainability Leadership Award
Innovative Industrial Properties Inc. (NYSE:IIPR)
Selected highlights from their third quarter 2021 report on November 3, 2021
- Generated total revenues of approximately $53.9 million in the quarter, representing a 57% increase from the prior year’s third quarter
- Generated total revenues of approximately $145.6 million for the nine months ended September 30, 2021, compared to approximately $79.8 million for the same period in 2020, an increase of 82%
- Paid a quarterly dividend of $1.50 per share on October 15, 2021, to common stockholders of record as of September 30, 2021, representing an approximately 28% increase over the third quarter 2020’s dividend
AcuityAds Holdings Inc. (TSX:AT)
Selected highlights from their third quarter 2021 report on November 3, 2021
- Third quarter 2021 total revenue was $27.5 million, a 5.4% increase year-over-year
- Flag ship product illumin third quarter 2021 revenue was up over 42% sequentially to $7.4 million, or 27% of total revenues in the quarter
- Net Income was $3.4 million for the three months ended September 30, 2021; a 265% increase compared to net income of $0.9 million for the same period in 2020
Magnite Inc. (NASD:MGNI)
Selected highlights from their third quarter 2021 press release on November 3, 2021
- Revenue of $131.9 million for Q3 2021, up 116% from Q3 2020
- Net loss of $24.3 million in Q3 2021, for a loss per share of $0.18, compared to net loss of $10.5 million, for a loss per share of $0.10 in Q3 of 2020
Roku Inc. (NASD:ROKU)
Selected highlights from their third quarter 2021 letter to shareholders on November 3, 2021
- Total net revenue grew 51% year-over-year (YoY) to $680 million
- Platform revenue increased 82% YoY to $583 million
- Gross profit was up 69% YoY to $364 million
- Active Accounts reached 56.4 million, a net increase of 1.3 million active accounts from Q2 2021
- Average Revenue Per User (ARPU) grew to $40.10 (trailing 12-month basis), up 49% YoY
BCE Inc. (TSX:BCE)
Selected highlights from their third quarter 2021 news release on November 4, 2021
- Net earnings grew 9.9% to $813 million
- Media revenue grew 14.5%, reflecting higher advertiser spending across all platforms
- Digital revenue increased 32% and now represents 22% of total media revenue
- Grown total revenue and adjusted EBITDA back to the levels of pre-pandemic Q3 2019
Cloudflare Inc. (NYSE:NET)
Selected highlights from their third quarter 2021 announcement on November 4, 2021
- Total revenue of $172.3 million, representing an increase of 51% year-over-year
- GAAP gross profit was $134.8 million, or 78.2% gross margin, compared to $87.2 million, or 76.3%, in the third quarter of 2020
- GAAP net loss was $107.3 million, compared to $26.5 million in the third quarter of 2020
Skyworks Solutions Inc. (NASD:SWKS)
Selected highlights from their fourth quarter and full year 2021 press release on November 4, 2021
Q4:
- Delivers Record Q4 Revenue of $1.311 Billion, up 17% Sequentially and 37% Y-o-Y
- Posts Q4 FY21 GAAP Diluted EPS of $1.95, up 34% Y-o-Y
- Guides to Double-Digit Sequential Revenue and Earnings Growth in Q1 FY22
FY21:
- Delivers Record FY21 Revenue of $5.109 Billion, up 52% Y-o-Y
- Posts FY21 GAAP Diluted EPS of $8.97, up 87% Y-o-Y
- Generates Record Operating Cash Flow in FY21 of $1.772 Billion, up 47% Y-o-Y
Datadog Inc. (NASD:DDOG)
Selected highlights from their third quarter 2021 news release on November 4, 2021
- Revenue was $270.5 million, an increase of 75% year-over-year
- GAAP operating loss was $(4.9) million
- Operating cash flow was $67.4 million, with free cash flow of $57.1 million
- 1,800 customers with ARR of $100,000 or more, an increase of 66% from 1,082 as of September 30, 2020
Pinterest Inc. (NYSE:PINS)
Selected highlights from their third quarter 2021 letter to shareholders on November 4, 2021
- Q3 revenue grew 43% year over year to $633 million, driven by advertiser demand from large retailers and international marketers
- Global ARPU grew 37% year over year to $1.41, compared to $1.03 in Q3 2020.
- Net income was $94 million or 15% of revenue, compared to a loss of $(94) million, or (21)% for the same period in 2020
Progyny Inc. (NASD:PGNY)
Selected highlights from their third quarter 2021 announcement on November 4, 2021
- Third Quarter Revenue of $122.3 Million, a 24% increase as compared to the $98.9 million reported in the third quarter of 2020
- Gross profit was $28.5 million, an increase of 37% from the $20.8 million reported in the prior year period
- Net income was $16.8 million, an increase of $12.0 million as compared to the net income of $4.8 million, reported in the third quarter of 2020
Telus Corp. (TSX:T)
Selected highlights from their third quarter 2021 news release on November 5, 2021
- Consolidated operating revenues and other income increased by 6.8 per cent over the same period a year ago to $4.3 billion
- Net income of $358 million increased by 11.5 per cent over the same period last year and basic earnings per share (EPS) of $0.25 increased by 4.2 per cent
- Free cash flow of $203 million increased by $42 million or 26 per cent over the same period a year ago
- Total TELUS technology solutions subscriber base of 16.6 million is up 5.9 % over the last twelve months
Trisura Group Ltd. (TSX:TSU)
Selected highlights from their third quarter 2021 review presentation on November 5, 2021
- earnings of $16.1 million, an increase of 145.7% over last year
- a 20.4% return on equity
- third quarter adjusted earnings per share of C$ .41
Portfolio 2
Portfolio 1 for the week ended November 5, 2021: UP
Activity
No significant activity to report this week.
Dividends
Dividends Received this week for the following companies:
Companies followed by DRIP (Dividend Re-Investment Plan) indicate additional shares were purchased with the dividend. Any cash leftover was added to the cash balance.
No dividends this week
Quarterly Reports
Guardant Health Inc. (NASD:GH)
Selected highlights from their third quarter 2021 press release on November 4, 2021
- Revenue was $94.8 million for the three months ended September 30, 2021, a 27% increase from $74.6 million for the three months ended September 30, 2020
- Gross profit was $64.0 million for the third quarter of 2021
- 22,806 tests to clinical customers and 4,839 tests to biopharmaceutical customers in the third quarter of 2021, representing an increase of 35% and 58%, respectively, over the third quarter of 2020
Mitek Systems Inc. (NASD:MITK)
Selected highlights from their third quarter 2021 review presentation on November 4, 2021
Q4:
- Total revenue increased 9% year over year to a record $33.3 million
- GAAP net income was $2.2 million, or $0.05 per diluted share
- Cash flow from operations was $12.3 million.
- Transactional identity verification revenue continued its solid performance growing 33% year over year, and deposit solutions grew 23% year over year as consumer adoption further expands
FY21:
- Total revenue increased 18% year over year to a record $119.8 million.
- GAAP net income was $8.4 million, or $0.19 per diluted share.
- Full year cash flow from operations was a record $37.4 million.
TC Energy Corp. (TSX:TRP)
Selected highlights from their third quarter 2021 news release on November 5, 2021
- earnings for third quarter 2021 were $1.0 billion or $0.99 per common share compared to $893 million or $0.95 per common share in 2020
- declared a quarterly dividend of $0.87 per common share for the quarter ending December 31, 2021, equivalent to $3.48 per common share on an annualized basis
Brookfield Renewable Partners LP (TSX:BEP.UN)
Selected highlights from their third quarter 2021 press release on November 5, 2021
- Generated funds from operations (FFO) of $210 million, or $0.33 per unit, a 32% increase over the same period in the prior year
- Approximately $3.3 billion of available liquidity providing an investment grade balance sheet with no meaningful near-term maturities
Telus Corp (TSX:T)
Selected highlights from their third quarter 2021 news release on November 5, 2021
- Consolidated operating revenues and other income increased by 6.8 per cent over the same period a year ago to $4.3 billion
- Net income of $358 million increased by 11.5 per cent over the same period last year and basic earnings per share (EPS) of $0.25 increased by 4.2 per cent
- Free cash flow of $203 million increased by $42 million or 26 per cent over the same period a year ago
- Total TELUS technology solutions subscriber base of 16.6 million is up 5.9 % over the last twelve months
Portfolio 3
Portfolio 1 for the week ended November 5, 2021: UP
Once again Portfolio 3 was lifted by the tech stocks Shopify, Microsoft and Cloudflare. I expected robust growth from Shopify and Cloudflare as they are both relatively young companies in their strong growth phases and both are riding the tailwinds of e-commerce and cybersecurity, respectively. Microsoft is an older, more stable company by comparison, so I am surprised to see it growing almost as fast as the two cloud-based companies.
Activity
No activity to report.
Dividends
Dividends Received this week for the following companies:
Companies followed by DRIP (Dividend Re-Investment Plan) indicate additional shares were purchased with the dividend. Any cash leftover was added to the cash balance.
Canadian $
Toronto-Dominion Bank (TSX:TD)
US $
No US$ dividends this week.
Quarterly Reports
VieMed Healthcare Inc. (TSX:VMD)
Selected highlights from their third quarter 2021 financial statements on November 1, 2021
- Third quarter revenue of $29.3 MILLION
- Quarterly earnings per share $0.04
goeasy Ltd. (TSX:GSY)
Selected highlights from their third quarter 2021 review presentation on November 3, 2021
- During the quarter, generated a record $436 million in total loan originations, up 52% compared to the $287 million produced in the third quarter of 2020
- Net income in the third quarter was $63.5 million, compared to $33.1 million in the same period of 2020
- Diluted earnings per share of $3.66, compared to $2.09 in the third quarter of 2020
- Return on equity during the quarter was 32.7%, compared to 34.7% in the third quarter of 2020
AcuityAds Holdings Inc. (TSX:AT)
Selected highlights from their third quarter 2021 report on November 3, 2021
- Third quarter 2021 total revenue was $27.5 million, a 5.4% increase year-over-year
- Flag ship product illumin third quarter 2021 revenue was up over 42% sequentially to $7.4 million, or 27% of total revenues in the quarter
- Net Income was $3.4 million for the three months ended September 30, 2021; a 265% increase compared to net income of $0.9 million for the same period in 2020
Magnite Inc. (NASD:MGNI)
Selected highlights from their third quarter 2021 press release on November 3, 2021
- Revenue of $131.9 million for Q3 2021, up 116% from Q3 2020
- Net loss of $24.3 million in Q3 2021, for a loss per share of $0.18, compared to net loss of $10.5 million, for a loss per share of $0.10 in Q3 of 2020
Cloudflare Inc. (NYSE:NET)
Selected highlights from their third quarter 2021 announcement on November 4, 2021
- Total revenue of $172.3 million, representing an increase of 51% year-over-year
- GAAP gross profit was $134.8 million, or 78.2% gross margin, compared to $87.2 million, or 76.3%, in the third quarter of 2020
- GAAP net loss was $107.3 million, compared to $26.5 million in the third quarter of 2020
Telus International Canada Inc. (TSX:TIXT)
Selected highlights from their third quarter 2021 press release on November 5, 2021
- Revenue of $556 million, 30% year-over-year revenue growth in the third quarter
- Adjusted diluted EPS was $0.26 in the third quarter, up 13% year-over-year
Brookfield Renewable Partners LP (TSX:BEP.UN)
Selected highlights from their third quarter 2021 press release on November 5, 2021
- Generated funds from operations (FFO) of $210 million, or $0.33 per unit, a 32% increase over the same period in the prior year
- Approximately $3.3 billion of available liquidity providing an investment grade balance sheet with no meaningful near-term maturities