The Globe and Mail reports in its Thursday edition that Bank of Nova Scotia strategist Jean-Michel Gauthier is warning that third-quarter TSX earnings only looked good on the surface -- and the outlook for profitability in Canada's corporate sector "remains poor." The Globe's Scott Barlow writes that total third-quarter profits for stocks in the S&P/TSX Composite Index were $362 per share, 3.2 per cent above the $351 consensus estimate. Eight out of 11 sectors beat consensus, with energy, industrials and technology clearing earnings forecasts by the biggest amount while financials, materials and health care underperformed expectations. All told, 68 per cent of Toronto Stock Exchange companies exceeded consensus estimates, the best result since the first quarter of 2022. However, only 40 per cent of TSX stocks beat revenue expectations in Q3, a potential sign of both a slowing economy and accounting machinations (like booking one-time gains, for example) to improve bottom line results. Revisions to forward guidance were generally negative, with fourth quarter earnings per share cut 3 per cent and 2024 full-year profit estimates reduced by 0.2 per cent. Mr. Gauthier recommends investors seek "cheap" quality stocks.