Alimentation Couche-Tard (TSE: ATD) operates a network of convenience stores across North America, Ireland, Scandinavia, Poland, the Baltics, and Russia.
The company primarily generates income through selling tobacco products, fuel, groceries, beverages, fresh food, quick service restaurants, car wash services, other retail products and services, and more.
Earnings Results
The company recently reported earnings for its fourth quarter of Fiscal Year 2022. Earnings per share came in at US$0.55, which was above analysts’ consensus estimate of US$0.53. In the past nine quarters, the company has beat estimates seven times.
In addition, sales increased 34.3% year-over-year, with revenue hitting $16.4 billion compared to $12.2 billion. The increase in revenue can be attributed to higher fuel prices, acquisitions, and organic growth.
Unfortunately, gross profit increased by only 9.5%, which means that the company wasn’t really able to fully capitalize on its significant revenue growth.
Investor Sentiment
The sentiment among TipRanks investors is currently very positive. Out of the 538,288 portfolios tracked by TipRanks, only 0.1% hold ATD. However, the average portfolio weighting allocated towards ATD among those who do have a position is 6.27%. This suggests that investors of the company are quite confident about its future prospects.
Furthermore, in the last 30 days, 4.3% of those holding the stock increased their positions. As a result, the stock’s sentiment is significantly higher than the sector average, as demonstrated in the following image:
Analyst Recommendations
Alimentation Couche-Tard has a Strong Buy consensus rating based on three Buys assigned in the past three months. The average ATD price target of C$67.33 implies 29.8% upside potential.
Final Thoughts
ATD saw a strong quarter, as revenue grew substantially while earnings came in better than expected. As a result, both analysts and investors are very positive about the stock as it continues to grow.
