- Couche-Tard’s adjusted earnings per share (EPS) was 74 cents, missing the estimated 76 cents.
- Total revenue was $17.41 billion, falling short of the expected $18.19 billion.
- Merchandise and service revenues reached $4.39 billion, slightly under the $4.42 billion projection.
- In the United States, merchandise and service revenues were $2.95 billion, narrowly missing the estimate of $2.96 billion.
- Merchandise and service revenues in Europe and other regions outperformed expectations at $855 million compared to the expected $828.4 million.
- Canadian merchandise and service revenues were $580.7 million, below the estimated $593.3 million.
- The consolidated merchandise and service gross margin was 34.6%.
- In the United States, the gross margin for merchandise and service was 33.8%, below the 34.3% estimate.
- Europe and other regions had a gross margin of 38.2%, which was less than the 38.7% forecast.
- Canada’s gross margin in this segment was 33.6%, just shy of the 33.8% estimate.
- Adjusted EBITDA was $1.52 billion, surpassing the expected $1.51 billion.
- The company noted that despite challenges in the convenience and fuel business due to cautious consumer spending, they remain confident in their global network and long-term growth strategy.
- Market sentiment includes 11 buy ratings, 3 hold ratings, and 1 sell rating on the stock.
Alimentation Couche-Tard on Smartkarma
Analysts on Smartkarma, such as Value Investors Club, are positive about Alimentation Couche-Tard Inc (ATD.). According to the research report published on Sunday, Apr 21, 2024, Alimentation Couche-Tard is recognized as a global leader in convenience stores and gas stations. The company boasts a stable and recession-resistant business model, attributing its success to a strong management team dedicated to consolidating the fragmented c-store industry and generating robust free cash flow. ATD stock is viewed as trading at a reasonable multiple with the potential for mid-teens FCF per share growth, offering an appealing long-term investment opportunity as per the insights shared by Value Investors Club.
A look at Alimentation Couche-Tard Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Alimentation Couche-Tard Inc. has a mixed outlook based on the Smartkarma Smart Scores. The company scores moderately in value and growth, indicating a stable position with room for potential growth in the future. However, its dividend and resilience scores are lower, suggesting limited returns for investors seeking income and potential vulnerability to market challenges. On a positive note, Alimentation Couche-Tard shows good momentum, which could indicate strong potential for future performance based on its current market trends.
As the owner and operator of convenience stores globally, Alimentation Couche-Tard Inc. offers a diverse range of products and services, including essentials like coffee, snacks, and fuel, as well as lottery tickets and alcoholic beverages. This broad offering provides a solid foundation for the company’s operations and potential growth. Investors looking at Alimentation Couche-Tard should consider its balanced outlook across various factors to make informed investment decisions in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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