After market close, Alimentation Couche-Tard (TSE:ATD), an operator of gas stations and convenience stores, reported its Q4-2023 earnings results. The results beat consensus estimates, as adjusted earnings per share reached $0.71 (C$0.93) compared to the predicted $0.49 (C$0.64). This was a noteworthy 29.1% increase from the $0.55 earned during the same period of the previous year. Also, revenue came in at $16.26 billion, beating the consensus estimate of $16.14 billion.
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Please note that all figures are in U.S. dollars unless otherwise stated and that the results (not including same-store sales) include an extra week compared to last year’s figures.
Couche-Tard’s Q4 adjusted net earnings were around $698.0 million, marking an increase from the previous year’s $573.0 million. Additionally, total merchandise and service revenues rose by 11.0% to reach $4.2 billion. The company also reported a 3.3% same-store merchandise revenue growth in the U.S., 3.0% in Europe and other regions, and a higher 5.9% in Canada. Merchandise and service gross margins grew as well due to an advantageous change in product mix.
Next, road transportation fuel volumes rose marginally in the U.S. and by 6.0% in Canada, but a 2.4% decrease was seen in Europe and other regions. The company cited geopolitical context and difficult supply conditions as reasons for this fall.
For Fiscal 2023, net earnings per diluted share increased by 21.4% to $3.06, while adjusted earnings rose by 20.0% to $3.12. Revenue grew notably as well, rising by 14.4% from $62.81 billion to $71.86 billion.
Is ATD Stock a Buy, According to Analysts?
According to analysts, ATD stock comes in as a Strong Buy based on four unanimous Buys assigned in the past three months. The average ATD stock price target of C$76.33 implies 16.8% upside potential.
If you’re wondering which analyst you should follow if you want to buy and sell ATD stock, the most accurate analyst covering the stock (on a one-year timeframe) is Chris Li, CFA of Desjardins, with an average return of 15.2% per rating and a 100% success rate. Click the image below to learn more.
