Topic: How To Invest

Stock Pickers Digest Hotline – Friday, March 23, 2018

Article Excerpt

ALIMENTATION COUCHE-TARD INC., $56.45, symbol ATD.B on Toronto, operates 12,750 convenience stores across North America and Europe. The stock fell over 11% this week after the company reported its latest quarterly results. In the three months ended February 4, 2018, sales jumped 38.3%, to $15.79 billion from $11.42 billion a year earlier (all figures except share price in U.S. dollars). The jump was mostly due to acquisitions, including convenience-store chain CST Brands (symbol CST on New York). However, earnings per share, excluding one-time items, rose just 1.9%, to $0.54 from $0.53.  That was well below the consensus forecast of $0.74. Profits fell as Couche-Tard’s supply costs—oil refinery prices—outpaced gasoline prices at the pump. The company continues to repair and clean up its retail network in the Southern U.S. after a series of storms, including Hurricane Harvey. As well, spending on food and other goods in Couche-Tard’s U.S. stores was unexpectedly sluggish. That was despite rising employment and consumer confidence levels. Even with the weak quarter,…