Canada's Metro misses Q3 sales estimates
Overview
Metro fiscal Q3 sales rise 3.3% yr/yr, but miss analysts' expectations, per LSEG data
Adjusted EPS for fiscal Q3 misses consensus, despite 12.6% yr/yr growth
Company opened 5 new food stores, continuing expansion of discount banners
Outlook
Metro Inc focuses on realizing efficiency gains after supply chain investments
Company faces uncertain economic environment impacting operations
Metro Inc plans retail network expansion in coming years
Company emphasizes value delivery through merchandising and loyalty offers
Result Drivers
RETAIL NETWORK - Higher sales in retail network drove a 3.3% increase in Q3 sales
PHARMACY SALES - Pharmacy same-store sales rose 5.5%, driven by prescription drugs and over-the-counter products
STORE EXPANSION - Opened 5 new food stores, continuing discount banner expansion
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Miss | C$6.87 bln | C$6.92 bln (8 Analysts) |
Q3 Adjusted EPS | Miss | C$1.52 | C$1.53 (8 Analysts) |
Q3 EPS |
| C$1.48 |
|
Q3 Adjusted Net Income |
| C$331.80 mln |
|
Q3 Net Income |
| C$323 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food retail & distribution peer group is "buy."
Wall Street's median 12-month price target for Metro Inc is C$105.50, about 0.5% below its August 12 closing price of C$106.03
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago
Press Release: ID:nCNWcQQ28a
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