Small caps to watch: An active trading day ahead for AGI, Canaccord, MDA Space, AutoCanada, and Sienna Senior Living
A look at some small-cap stocks making news – or about to. This file will be updated later this morning
Canada’s S&P/TSX Small Cap Index TXTW-I is up by about 35 per cent over the past 52 weeks as of Thursday’s close. It hit a record of 1,179.02 on Oct. 15. The Russell 2000 in the U.S. is up about 0.5 per cent over the past 52 weeks. It hit a record 2,541.67 on Oct. 15.
Small-cap summary
MDA Space Ltd. (MDA-T) shares could be active today after the company reported third-quarter results that largely beat expectations.
Before markets opened on Friday, the Brampton, Ont-based company reported revenue of $409.8-million, up from $282.4-million in the third quarter of 2024. The result best expectations of $406.7-million, according to S&P Capital IQ.
Net income of $24.4-million or 19 cents per share fell from $29.5-million or 24 cents in the same quarter last year. On an adjusted basis, MDA says it earned 35 cents per share, in line with expectations and up from 28 cents per share last year.
Adjusted EBITDA of $82.8-million was above expectations of $77.7-million and ahead of $55.5-million a year ago.
The company reaffirmed its outlook for revenues to be in the $1.57-billion to $1.63 billion range, representing year-over-year growth of approximately 48 per cent at the mid-point of guidance and adjusted EBITDA to be $305-million to $320-million, representing year-over-year growth of approximately 45 per cent at the mid-point of guidance.
“We continue to expect full year free cash flow to be neutral to positive in 2025,” the company stated, but added that the 2025 financial outlook doesn’t incorporate any potential impact from U.S. tariffs announced this year on articles imported from Canada or any retaliatory Canadian tariffs that may be imposed on Canadian imports from the U.S.
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Ag Growth International Inc. (AFN-T) shares could be under pressure Friday after the company announced late Thursday that its third-quarter results, rescheduled for Nov. 14, will be delayed again. It also said that it’s withdrawing its previously issued adjusted EBITDA guidance for fiscal 2025.
The company said it needs more time to finalize the accounting treatment of its operations in Brazil.
“The company is working diligently to complete the required filings and anticipates, but cannot assure, that these filings will be finalized and filed within 60 days,” it stated in a release. “To facilitate the completion of the required filings, the audit committee is in the process of reviewing various matters relating to the company’s financial reporting and internal controls with respect to its operations in Brazil.”
It also applied for a management cease trade order with the applicable securities regulatory authorities in Canada until the filings are made.
“Tomorrow will not be a good day,” National Bank Financial analyst Maxim Sytchev said in a Nov. 13 note, referring to Friday trading. He noted that the company had already pushed the reporting to Nov. 14 from Nov. 3.
“We have reached out to the company and were directed to the press release,” he wrote, adding that it “would not be surprising to see shares down commensurate with Brazil exposure, somewhere in the -15% range (given jittery tape, we would not be surprised by more).”
The analyst also wrote: “We have consistently faced pushback around the company’s earnings quality; tonight’s press release will not help in that department. Given the paucity of any real info, we are sticking with the current Excel; investors, however, will require a higher risk premium for this name.”
He has an “outperform” (buy) and $49 target on the stock.
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Canaccord Genuity Group Inc. (CF-T) shares could see volatility on Friday after the company announced an impairment charge in its U.S. capital markets business and an increased provision related to previously disclosed U.S. regulatory matters.
After markets closed on Thursday, Canaccord said it recorded a non-cash goodwill impairment charge of $110-million related to its U.S. capital markets business.
“This charge reflects reduced business activity driven by an operating environment affected by evolving market dynamics and trade-related uncertainties, impacting revenue and profitability for this business,” it stated in a release.
The company also announced that it’s near a settlement of regulatory enforcement matters in the U.S. Canaccord disclosed in 2023 that it was facing a regulatory probe tied to its wholesale market-making activities.
The company said late Thursday that it has increased its provision by US$55-million ($76.6-million Canadian) to US$75-million ($104.4-million Canadian) in its second quarter financial results to reflect its current estimate of total monetary penalties related to an expected resolution of those U.S. regulatory enforcement matters.
“We’ve made significant progress and ongoing investments to upgrade and transform our compliance infrastructure,” CEO Dan Daviau said in an interview with Bloomberg published late Thursday.
The company reported a second-quarter loss attributable to shareholders of $203.6-million or $2.04 per share compared to a loss of $4.8-million or 5 cents last year.
Adjusted net income attributable to shareholders came in at $29-million, up from $20-million a year earlier. Earnings per share came in at 27 cents, up from 20 cents last year. The expectation was for adjusted EPS of 21 cents, according to S&P Capital IQ.
Adjusted revenue of $530.4-million compared to $427.6-million a year ago and ahead of expectations of $476-million.
“We recognize the fundamental value in CF shares driven by the ongoing strength of the Wealth segment and the Capital Markets division’s ability to leverage improving market conditions,” Ventum Capital Market analyst Rob Goff said in a note. “We assign a strong probability to a value-optimizing event in the sale of the UK wealth management group. With the sale of its control position in the UK Wealth Management division, we could see Canaccord invest significant amounts in an SIB [substantial issuer bid] and special dividend.”
Added Mr. Goff: “Focused on ongoing fundamentals, we see encouraging performance trends suggest a more robust capital market environment, enhancing the Company’s positioning in mid- and smaller-capitalization companies and supporting a positive outlook for future growth.”
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AutoCanada Inc. (ACQ-T) shares could be under pressure in Friday trading after the company reported third-quarter results that missed expectations.
After markets closed on Thursday, the company reported a 15-per-cent drop in revenue to $1.2-billion from $1.4-billion a year earlier. The expectation was for revenue of $1.3-billion, according to S&P Capital IQ.
AutoCanada said the drop was primarily due to decreases in new-vehicle sales, used-vehicle sales, parts and service, and finance and insurance. “This decline is partially offset by an increase in revenue from collision repair services,” it stated.
Same-store revenue fell 12.4 per cent year over year.
The company swung to a loss of $2.9-million or 14 cents per share versus a profit of $27.2-million or $1.09 per share a year earlier.
Adjusted EBITDA decreased by 8 per cent to $58.1-million year over year. The expectation was for $57.3-million.
“This quarter reflects a period of transition as we work to complete the most significant cost transformation in AutoCanada’s history,” stated interim CEO Samuel Cochrane in a release. “While top-line performance was softer, our cost reduction initiatives remain firmly on track and are building the structural efficiencies required to position the Company for sustained, profitable growth.”
He said the company’s near-term priorities will include expanding its collision operations and strengthening the performance of its dealership network under a new framework “designed to drive consistent, profitable volume growth across our business.”
In a note titled, “Q3/25 – not a good look,” National Bank Financial analyst Maxim Sytchev said restructuring efforts “continue to impress, but volumes surprise to the downside.”
The analyst lowered his target to $31 from $36 but kept his “outperform” (buy) rating.
“EBITDA was in line, but the absolute level of revenue decline is concerning; over the years ACQ went through a number of strategic realignments and there was always a temporary hint of things ‘working’ only for investors to be disappointed 12 – 24 months later,” he wrote in a note. “We sincerely hope this is not a repeat as the cost-out exercise appears to have been more deliberate. Cash infusion from U.S. dealership sales also moved to the right; with concerns down south around sub-prime and the auto space in general now, we would have preferred an earlier closing.”
Added Mr. Sytchev: “While there were questions on the [conference] call regarding M&A as a function of leverage, we believe a more realistic trigger should be operational resilience amid revenue fluctuations to make sure the platform can absorb any incremental growth; net-net, this was a negative print (hopefully cushioned somewhat by the precipitous -36% share price decline since Sept. 2025).”
Canaccord Genuity analyst Luke Hannan reiterated his “buy” rating and $36 target after the earnings report.
“We believe it is possible for the company to generate material EBITDA growth as a function of streamlining its businesses and eliminating costs, which is (somewhat) independent of market conditions,” he wrote.
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Sienna Senior Living Inc. (SIA-T) shares could be active in Friday trading after the company reported better-than-expected revenue and increased retirement home occupancy in its third quarter.
After markets closed on Thursday, the Markham, Ont.-based company reported revenue of $261.7 million up 16.4 per cent compared to $224.8-million the same quarter in 2024. The result was ahead of expectations of $257-million.
“In the Retirement segment, the increase is primarily attributable to occupancy growth, rental rate increases in line with market conditions, and higher care and ancillary revenue,” the company stated. “In the LTC [long-term care] segment, the increase is primarily due to higher flow-through funding for direct care, private accommodation revenue increases and contributions from acquisitions completed in 2025.”
The company said average occupancy in its same-property portfolio was 94.1 per cent in the quarter, up from 91.8 per cent a year earlier.
Net operating income rose 24.5 per cent to $54.1-million, compared to last year.
Adjusted funds from operations rose 36 per cent to $27.7-million compared the same quarter last year. AFFO per share came in at 29.8 cents, which was in line with expectations and up from 26.6 cents last year.
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Private equity fund Warburg Pincus LLC plans to take private Toronto-based alternative lender ECN Capital Corp. (ECN-T) with a $1.1-billion buyout, the latest in a series of PE acquisitions of Canadian public companies.
Late Thursday, New York-based Warburg announced an agreement to buy ECN, run by entrepreneur and chief executive officer Steve Hudson, for $3.10 per share in cash. The offer came at a 13-per-cent premium to ECN’s closing price on Wednesday on the Toronto Stock Exchange.
ECN reported earnings on Wednesday and its stock price rose 11.6 per cent on Thursday to $3.07 on the TSX.
Read the full Globe story here
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Guardian Capital Group Ltd. (GCC-T), the financial services firm about to be taken private by financial services giant Desjardins Group, reported lower revenue but higher earnings in its latest quarter.
After markets closed on Thursday, Guardian Capital reported revenue of $92-million for the third quarter ended Sept. 30, compared to $98.1 million in the same quarter in the prior year.
Net earnings of $70.2-million or $2.89 per share, compared to net earnings of $39.2-million or $1.60 per share in the same quarter last year.
Adjusted cash flow from operations was $5.7-million, compared to $13.3-million in the comparative period.
The company also announced that the Commissioner of Competition has issued a “no-action letter” for the proposed takeover by Desjardins, which satisfies the Competition Act approval condition to closing the deal. However, it said other conditions remain. It said the deal is set to close in the first half of 2026.
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Upcoming small-cap earnings:
Nov. 20: Real Matters Inc. (REAL-T), Sucro Ltd. (SUGR-X)
Nov. 27: Rogers Sugar Inc. (RSI-T)
Dec. 3: EQB Inc. (EQB-T)
Dec. 5: Laurentian Bank (LB-T)
Dec 10: Transcontinental Inc. (TCL-A-T)
