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RBC analyst Irene Nattel expects Tim Hortons Inc. (NYSE:THI) to announce another round of positive results when it releases second quarter earnings on Friday. The analyst told clients she expects 13% growth in operating income to C$112- million and earnings per share of C37¢, which is 5% below prior-year EPS due to a C7¢ per share tax benefit recorded in the second quarter.

Ms. Nattel said by taking the tax benefit away and comparing quarters "on an apples to apples basis," EPS growth year over year would be about 15.5%. She added that same store sales should grow 6% in Canada during the quarter and 5% in the U.S.

Ms. Nattel maintained her "outperform" rating on the stock and left her C$41 price target unchanged. Meanwhile, her US$ price target increased by $1 to US$38 to reflect changes in her exchange rate forecast.

Source: Tim Hortons Reports Earnings Friday: Preview