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Alimentation Couche-Tard misses revenue estimates on weak fuel business

Published 2019-11-26, 05:08 p/m
Alimentation Couche-Tard misses revenue estimates on weak fuel business
Caltex Australia Limited
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ATDb
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(Reuters) - Alimentation Couche-Tard Inc (TO:ATDb) missed quarterly revenue estimates on Tuesday, as the Canadian convenience store operator's fuel business was hit by lower selling prices.

Revenue in the fuel segment, its biggest, fell 8.8% to $9.94 billion. Couche-Tard has more than 8,500 stores outlets with fuel dispensing in North America.

Lower fuel selling prices have had a negative impact of about $661 million on the segment's revenue.

Crude prices have fallen in the quarter on the back of heightened global trade tensions.

Total revenue fell to $13.68 billion from $14.7 billion a year earlier, missing the average analyst estimate of $14.04 billion, according to IBES data from Refinitiv.

Net income attributable to the company rose to $578.6 million, or 51 cents per share, in the second quarter ended Oct. 13 from $473.1 million, or 42 cents per share, a year earlier.

Excluding items, the company earned 51 cents per share, beating analysts' estimates of 48 cents.

Couche-Tard on Monday had sweetened its approach for fuel retailer Caltex Australia (AX:CTX) with a A$8.61 billion offer in a bid to expand into Asia.

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