Small-Cap Market Overview
Canada’s S&P/TSX Small Cap Index has surged by about 30% over the past 52 weeks, hitting a record high recently. In comparison, the U.S. Russell 2000 is up 10% over the same period.
Key Company Updates
EQB Inc. (EQB-T)
EQB Inc., parent of Equitable Bank and EQ Bank, is implementing a significant restructuring, including cutting 8% of its workforce. The company is taking $85-million in pre-tax charges, with $20-million for restructuring and severance and $65-million in impairment charges. CEO Chadwick Westlake stated this move aims to boost return on equity by focusing capital and talent on growth areas. More details will be provided with fiscal 2025 results on Dec. 3. The stock has declined 17% over the past year.
Winpak Ltd. (WPK-T)
Winpak reported lower revenue and profit in Q3 due to slowing demand. Revenue fell to US$283-million from US$285.5-million, missing expectations. Volumes dropped by 3%, attributed to weakened customer demand. Net income was US$36.4-million or 60 cents US per share, down from US$38.5-million a year earlier. The company is pursuing M&A opportunities in the pharmaceutical/medical space and faces potential impacts from trade agreement changes.
Precision Drilling Corp. (PD-T)
Precision Drilling reported higher-than-expected revenue of $462.3-million for Q3, though down from $477.2-million a year ago. The company noted a "relative outperformance" compared to industry declines. It posted a net loss of $6.7-million due to higher deferred tax expenses. The outlook remains optimistic, with steady activity expected in Q4.
Mullen Group Ltd. (MTL-T)
Mullen Group reported mixed Q3 results. Revenue rose to $561.8 million from $532-million but missed expectations. Net income was $33.2-million or 36 cents per share, down from $38.3-million. Analysts highlight potential catalysts from "nation-building" projects and growth through M&A.
Dye & Durham Ltd. (DND-T)
Dye & Durham faced volatility after ex-CEO Matt Proud withdrew his offer to buy the company. Proud’s holding company, Plantro Ltd., cited evaluation of its holdings and potential stake reduction. D&D has enacted a poison pill and faced credit rating downgrades.
Upcoming Small-Cap Earnings
A list of companies reporting earnings in late October to December includes:
- Oct. 27: Morguard North American Residential REIT
- Oct. 29: Aecon Group, Morguard REIT, Allied Properties REIT, and others
- Oct. 30: Secure Waste Infrastructure, Black Diamond Group, Spin Master, and more
- Additional dates through Dec. 3, including EQB Inc.
These updates highlight the dynamic nature of small-cap stocks, with restructuring, earnings beats, and strategic shifts influencing market performance.
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