Shares of Alimentation Couche-Tard slipped on Thursday after the Canadian gas station and convenience store operator announced a decrease in earnings for the most recent quarter. This drop in earnings was primarily due to lower fuel sales, which led to a squeeze in revenue.
As of morning trading, the company's shares were down 1% at C$70.82. However, it's worth noting that the shares have still shown a 19% gain so far this year. In comparison, Toronto's S&P TSX index was down 0.3%, with a year-to-date gain of 4%.
Alimentation Couche-Tard, known for operating under the Circle K and Couche-Tard banners, has an extensive presence with over 14,400 stores across 25 countries. For the fiscal first quarter, the company reported earnings of $834.1 million, or 85 cents per share, compared to $872.4 million, or 85 cents per share, in the same period last year.
After adjusting for acquisition costs and a foreign exchange hit, per-share earnings increased slightly to 86 cents for the three months ending on July 23. This result surpassed the mean estimate of analysts polled by FactSet, who had projected earnings of 78 cents per share.
Total revenue for the quarter experienced a 16% decline and amounted to $15.62 billion. The decrease was primarily driven by a significant drop in the value of road-transport fuel sales. However, this decline was partially offset by an increase in merchandise and service revenue. Analysts had anticipated revenue of $16.13 billion.
Overall, despite the drop in earnings and revenue, Alimentation Couche-Tard has performed relatively well this year, and its ability to outperform analysts' expectations suggests resilience within the business.
The Correlation Between Energy Prices and Core Inflation
America's Freight Rails Face Complaints
Our Latest News
Positive Interim Data for ABBV-RGX-314 Gene Therapy in Wet AMD
Regenxbio shares positive interim results for ABBV-RGX-314 gene therapy in wet age-related macular degeneration (AMD). The therapy has shown a favorable safety...
Vanguard Settles Legal Battle with Former Advisor
Vanguard and former advisor Matthew Snipes have settled their legal dispute regarding the transfer of client accounts. The terms of the settlement remain confid...
Schwab Sees Declines in Net New Assets
Charles Schwab experiences declines in net new assets as a result of TD Ameritrade integration and delayed tax disbursements. Multi-generational relationships w...