The oil price rout and related Canadian dollar slide that is ravaging the country's economy is starting to take its toll on corporate profits, from rail and retail to seemingly unrelated sectors like telecoms.
"The direct impact from the energy sector alone is going to be significant," said Macquarie analyst David Doyle. "But the indirect impact will be large as well, and in many ways cascade across almost all sectors."
Thomson Reuters SmartEstimates data project that earnings per share for constituents of the Toronto Stock Exchange's S&P/TSX composite index are likely to decline on average by 28.3 percent in 2016 from a year ago, mainly due to the drag from energy and mining companies.
"It's a huge negative impact on earnings," said John Stephenson, head of Stephenson & Co Capital Management, who predicts the fallout will be felt across the board, from banks to real estate firms.
As 2016's first round of quarterly earnings begin to trickle in, some of the impact is already visible. Cable TV and internet firm Shaw Communications said this month the shutdown of work camps in Fort McMurray - the oil boomtown in northern Alberta - had led to the loss of a large number of internet subscribers.
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