Prof. Fournier Press Review: March 14 – March 18
Agenda: CGI, Shell, Frontier Airlines and Spirit Airlines, Peloton, Canopy Growth.
Increased profits for CGI. According to CGI's press release, the Montreal company specializing in consulting services related to information technology and management reports an increase in its profit for its last quarter compared to the same quarter a year earlier. The company's management attributes this excellent performance to the taste of new contracts. The company is confident that it will achieve growth of more than 8% for the year 2022. CGI mentions that it can achieve this growth through acquisitions and the addition of new corporate clients.
Excellent financial results for Shell. British energy company Shell is another oil company benefiting from rising energy prices. Indeed, for its most recent quarter, Shell recorded an increase of more than 40% in profits. According to CNBC, the company aims to pass its profits to its shareholders by increasing its dividend by 4%. The price of oil recently surpassed $90 per barrel of oil, which last time the price of oil reached this peak was in 2014. Shell is also confident that the natural gas sector will benefit from the company's profits for 2022 because the price of natural gas has tripled during 2021, and the demand seems to be growing for 2022.
Merger in air transport between Frontier Airlines and Spirit Airlines. Frontier Airlines and Spirit Airlines say they will merge their operations. According to CNBC, the two companies of American origins announced a merger of their operations - a transaction valued at more than 6 billion dollars. Frontier Airlines will control this new company with 51% of the shares. Both companies specialize in the low-cost air transport sector. This merger is expected to materialize in the second quarter of 2022. One of the objectives is to create a more competitive company in the low-cost flight sector. Both carriers will have no problem standardizing their aircraft fleet as they only use aircraft built by Airbus.
Change in senior management of Peloton. According to CNBC, the American company specializing in exercise bikes and treadmills announced a change in its senior management concerning the position of executive director. In addition, the company announced that more than 2000 employees would lose their jobs. One of the primary reasons for the job cuts is that Peloton has experienced very strong growth due to the pandemic. With the reopening of the economy, many Peloton subscribers have decided to return to the gyms for their training. With this change in behavior among Peloton subscribers, the company has decreased its expected revenues for the year 2022.
Financial loss for Canopy Growth in the last quarter. According to Yahoo Finance, cannabis producer Canopy Growth reported a financial loss of nearly $114 million for its most recent quarter, but this is an improvement because last year's loss had been $800 million for the same quarter. Canopy mentions that cannabis sales have declined domestically and internationally and that several strategies are being studied to remedy this situation. The company is considering acquiring a competitor and mentions that it is still optimistic for 2022 with the legalization of the sale of cannabis in certain states of the United States.