Canada: Couche-Tard results fall short of expectations
The Laval, Quebec-based convenience store giant said net profit for the third quarter reached $142.5 million (US) or 75 cents per share - 81 cents on an adjusted basis - up from $86.8 million or 48 cents in the year earlier period.
The earnings failed to beat the consensus analysts’ estimates of 87 cents per share in adjusted earnings and 93 cents in net income, as US fuel margins came in lower than expected and depreciation costs were higher.
Profit was offset partly by the increased debt taken on to finance last year’s $2.1 billion acquisition of Norway-based Statoil Fuel & Retail ASA and $13.6 million in foreign exchange losses.
Revenue rose 75 per cent to $11.57 billion, about $470 million higher than the analysts’ forecast.
Besides Statoil, Couche-Tard also made some tuck-in acquisitions in the US recently that also contributed to the huge boost in revenue.
“Our recent acquisitions continue to contribute significantly to our results,” president and chief executive officer Alain Bouchard said in a news release Tuesday.
Source: theglobeandmail.com
