Alimentation Couche-Tard

Alimentation Couche-Tard Q2 2018 EPS $0.80 vs. estimates of $0.73 (USD)

Management Commentary

-“In terms of our overall performance this quarter, the positive contribution from our newly acquired CST network is particularly notable and added to the strong increase of nearly 38.0% in our adjusted net earnings per share.” announced Brian Hannasch, President and CEO.

Financial Highlights

-Revenue of $12.1 billion vs. estimates of $11.58 billion, up 23.4% .

-Return on Equity (ROE) at 21.6%.

-Adjusted EPS of $0.80/share vs. estimates of $0.73, up 37.9%.

Key Metrics

-Dividend growth 5-year average: 29.4%.

-EPS growth 5-year average: 20.63%.

Recommendation: Hold

-The acquisition of CST brands is going fairly well and Couche-Tard is on track to meet $200 million in cost reductions.

-Some of the stores were affected by Hurricane Harvey and Irma, resulting in expenses of $4.8 million.

-Another acquisition, Holiday Station stores, will close in Q3 2018.

-Earlier this month, they announced a partnership with European auto makers to create the first network of high-power chargers across Europe.

-The stock is up 8% since my previous Earnings Report, and is trading higher as of this earnings beat.

-As expected, the stock to continues to move higher, watch as it reaches the 52-week high of $66.10 and if it breaks that resistance level, I envision new all time highs.


I, Jared Flomen, do own shares in Alimentation Couche-Tard.

Please consult a financial advisor before making investment decisions. This report represents my views, not actionable advice.