2023-06-28 16:39:13
Alimentation Couche-Tard has unveiled better-than-expected financial results for its fourth quarter. (Photo: Getty images)
What to do with the securities of Alimentation Couche-Tard, Thomson Archyde.com and Cogeco Communications? Here are some recommendations from analysts likely to move prices soon. Note: the author may have a totally different opinion from that expressed.
Alimentation Couche-Tard (ATD, $65.35): results that exceed expectations
The disclosure of the quarterly results of the convenience store and gas station operator is always an event awaited by the many investors who hold the title. Once again, they were not disappointed late yesterday afternoon.
Earnings per share for the 4th quarter of fiscal year 2023 were $0.71, up 29% on the corresponding quarter of the previous year. Martin Landry, director of research at Stifel GMP, points out, however, that the quarter extended over 13 weeks this year compared to 12 weeks last year. This explains about $0.05 of earnings per share.
The analyst had forecast earnings per share of $0.43, while analyst consensus was for $0.49. The variance is primarily attributable to higher gasoline and general merchandise margins, as well as gasoline volume sold.
Consolidated merchandise margins were 35%, the highest level in several years, the analyst said. Gasoline margins in the United States remained surprisingly high at US$0.45 per gallon, while the Stifel analyst had forecast US$0.37 per gallon. He therefore expects a good day on the stock market for Couche-Tard today.
Same-store sales (open more than a year) increased 3.3% in the United States, 5.9% in Canada and 3% in Europe compared to the previous year. The rise in Canada certainly surprised the analyst, who was instead predicting sales figures identical to the previous year.
On June 22, management announced that the union of Total Energies employees had approved the sale of the company to Couche-Tard, which was the first step in this acquisition process. The transaction will now require approval from European regulatory authorities, and it could close before the end of the year if all goes well.
Stifel’s research service recommends the purchase of the title. Its one-year target price is $74.
Thomson Archyde.com Corporation (TRI, $182.49): Acquisition of Casetext is a step closer to artificial intelligence (AI)
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