Couche-Tard and BlackBerry Jump as Metro Warns of Strike Impact

Here’s a round-up of news for Canadian investors this week.

Couche-Tard
BlackBerry
Metro

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Couche-Tard posts US$863.4M Q4 profit, revenue climbs to US$19.5B

Alimentation Couche-Tard Inc. (TSX:ATD)

Key fourth-quarter figures:

Profit: US$863.4 million (up from US$439.4 million a year earlier)
Revenue: US$19.5 billion (up from US$16.27 billion a year earlier)

Alimentation Couche-Tard reported net earnings attributable to shareholders of US$863.4 million in the fourth quarter, a notable increase from US$439.4 million in the same period last year. Diluted net earnings per share rose to US$0.94 from US$0.46 year over year.

The Laval, Quebec-based convenience store operator records its results in U.S. dollars and said total revenue reached US$19.5 billion, driven in part by higher average fuel selling prices during the quarter. Merchandise and service revenue also climbed, with total merchandise and service sales of US$4.5 billion—up 7.7% from US$4.19 billion a year earlier.

Couche-Tard’s management noted that the strategy the company outlined in February is generating momentum across its U.S. operations. While results reflect stronger fuel and retail performance for the period, investors will continue to watch execution of the company’s strategy and trends in fuel pricing for future quarters.

BlackBerry posts higher Q1 profit, raises full-year revenue guidance

BlackBerry Ltd. (TSX:BB)

Key first-quarter figures:

Profit: US$8.5 million (up from US$1.9 million a year earlier)
Revenue: US$152.9 million (up from US$121.7 million a year earlier)

BlackBerry reported a first-quarter profit of US$8.5 million, compared with US$1.9 million in the same quarter last year, as revenue increased by roughly 26% year over year. The company consequently raised its full‑year revenue outlook to a range of US$594 million–US$621 million, up from its previous forecast.

Revenue for the quarter was US$152.9 million, an improvement from US$121.7 million a year earlier. Reported earnings translated to roughly US$0.01 per diluted share for the three months ended May 31. On an adjusted basis, BlackBerry said it earned approximately US$0.04 per share versus an adjusted US$0.02 per share a year earlier. The market responded to the better-than-expected results and the upward revision in guidance.

Metro warns strike in Laval will dent Q3 results

Metro Inc. says the ongoing labour disruption at its Laval, Quebec, fresh produce distribution centre is affecting third-quarter sales and margins. The company now expects adjusted earnings per share for the third quarter to be in the range of $1.22 to $1.27, down from $1.52 in the same quarter last year.

For the first 14 weeks of its 16-week third quarter, Metro reported a 1.5% decline in food same-store sales versus the same period a year earlier. The company has incurred additional costs implementing contingency plans to maintain fresh produce supplies across its stores while the strike continues.

Metro said it will release its third-quarter results on Aug. 12. Negotiations remain unresolved: the union rejected the company’s latest offer earlier this month and has since tabled a counteroffer that Metro indicated it could not accept. The Laval distribution centre employs about 550 unionized workers and supplies fresh produce to roughly 300 Quebec stores, making the outcome of talks material to the grocer’s operations.

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