On a scale of 1 to 10, this week’s earnings reports fall between 3 and 4. It’s been a downright train wreck. It didn’t help that the U.S. credit rating was downgraded on Aug. 2.

Due to the double dose of bad news, the S&P/TSX Composite Index heads into Friday down 1.5%. The index is now up less than 4% on the year while the S&P 500 Index is up 17.7%.

If investors aren’t worried about the latest round of earnings reports, they should be. It could get uglier before it gets better.

Here are some of the highlights from the past couple of days.

Billion Dollar Loss

If you have rose-colored glasses, you can probably rationalize ETFs in Focus Post Apple’s Q3 Earnings and Revenue Beat US$1.6 billion loss in Q2 2023, arguing that if not for the US$1.34 billion impairment charge from the sale of its logistics business, its operating loss would have been a more palatable US$296 million, 56% higher than a year earlier. (All figures in Canadian dollars unless otherwise specified.)

Further, the optimist will point to the 17% increase in gross merchandise volume (GMV) in the quarter over last year, 18% if you exclude currency. In addition, the company’s results were much better than analyst expectations.

“Better than expected results stem from continued market share gains, solid uptake of Payments, Capital and POS, high merchant stickiness following pricing increases, Europe, and cost efficiencies/operating leverage,” wrote RBC Capital’s Paul Treiber in a note released before the bell titled “The strong get stronger,” The Globe and Mail reported.

Treiber raised his target price to US$90 from US$85.

The pessimist will say that the enthusiastic response by analysts is setting up SHOP stock for a big fall in future quarters.

BCE Profits Tumble

Once again, BCE’s (CA:BCE) second-quarter results are a case of glass-half-full or glass-half-empty.

To be sure, revenues rose 3.5% during Q2 to $6.07 billion. It did add 111,282 net new postpaid wireless subscribers, up almost 34% from a year ago.

However, its adjusted profit was $722 million, 8.7% lower than Q2 2022. If you include all the severance-related costs of its 1,300 job cuts in June, the telecom’s profit declined by 39% in the quarter to $397 million. Further, its free cash flow was $1.02 billion, less than analysts expected and nearly 24% lower than a year ago.

The company’s media division continues to drag on its profitability. In that respect, it’s very much the Canadian version of what AT&T (US:T) was before it spun off Warner Media.

Maple Leaf Foods Probably Regrets Move Into Plant-Based Arena

There was something for everyone in Maple Leaf Foods’ (CA:MFI) Q2 2023 report.

The good news: its overall sales rose 6.2% to $1.27 billion due to a 6.6% increase in sales from its Meat Protein Group. The bad news: its Plant Protein Group lost $11.6 million on just $36.7 million in sales.  The group’s sales represent less than 3% of Maple Leaf Foods’ overall revenue in the quarter.

Here’s what the company had to say about its Plant Protein Group:

“The Company’s analysis to date confirms that the very high category growth rates previously predicted by many industry experts are unlikely to be achieved given current customer feedback, experience, buy rates and household penetration. … Accordingly, the Company has pivoted its strategy and investment thesis for the Plant Protein Group and has set a new goal to deliver neutral or better Adjusted EBITDA in the latter half of 2023,” read its Q2 2023 press release.

In 2022, the Plant Protein Group took a non-cash impairment of $191 million. Given it’s struggling to break even on an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) basis, it’s hard to see the company being able to sell the business for any tangible value in the future.

Nutrien Profit Forecasts Continue to Retreat

In July, Nutrien (CA:NTR) warned it would soon cut its profit forecast. On Aug. 2, it was true to its word, dropping its adjusted earnings per share for 2023 to $4.72 (all figures in U.S. dollars), down from $6.50 in May, which was lower than its February estimate of $9.55 at the midpoint of its guidance.

The profit forecast was part of its Q2 2023 results delivered on Aug. 2. In the second quarter; its sales were $11.7 billion, 19.3% lower than a year ago. On the bottom line, its adjusted EBITDA was $1.07 billion, 25% lower than in Q2 2022.

“Nutrien’s results have been impacted by unprecedented volatility in global crop input markets over the last 18 months. We continue to see demand strengthen in our key markets, in particular North America, however the process of recovery has been more uneven in offshore markets,” commented Ken Seitz, Nutrien’s president and CEO.

These are just four poor quarterly performances reported in the past 24 hours. There are more where these came from. Investors take cover.

This article originally appeared on Fintel

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.