CIBC Trims EPS Estimates On Viterra, Cites Disappointing Q4
Friday, January 20, 2022 10:36 AM

CIBC World Markets Inc. cut its earnings estimates on Viterra Inc. (TSX:VT.TO) to reflect the agri-business company's new grain-handling margin forecast, lower product margins and higher costs.

Jacob Bout, an analyst at CIBC, has a "Sector Perfomer" rating on the stock with a price target of $14.00.

The Canadian company reported Q4 GAAP EPS of $0.03 (adjusted EPS of ~$0.06) versus CIBC estimate of $0.13 and consensus of $0.09.

"Higher tax rate and higher SGA in international grain handling caused the main variance," Bout wrote in a note. "Agri-products were a beat, a function of good fall weather and low gas prices."

Bout said VT maintained a positive outlook for 2012, guiding to global grain-handling margins of $38-$41pt (versus $37pt in 2011).

The analyst trimmed his 2012 EPS estimate for the company to 77 cents from 88 cents and 2013 EPS estimate to 82 cents from 91 cents.

VT.TO shares, which have been trading between $9.30 and $12.28 over the past year, is down 0.76% to $10.51 on Friday.