Alimentation Couche-Tard Inc., which operates more than 12,000 convenience stores in North America and Europe, reported a steep rise in fiscal second-quarter net profit that beat expectations. The company said acquisitions and higher road transportation fuel gross margins more than offset the impact of hurricanes in the U.S.
Couche-Tard reported net profit in the 12-week period ended Oct. 15 jumped 35.4% year over year to $435.3 million from $321.5 million in the 12-week period to Oct. 9, 2016. Diluted earnings per share increased 33.3% year over year to 76 cents from 57 cents in the year-earlier period.
A mean consensus of analysts' estimates had forecast GAAP net profit of $395 million and diluted EPS of 72 cents, according to S&P Capital IQ.
Revenue soared 43.8% year over year to $12.14 billion from $8.45 billion, beating a forecast of $11.64 billion.
The Laval, Canada-based company as of July 23 operated 9,471 convenience stores throughout North America and 2,754 in Europe, most of which offer road transportation fuel and convenience products. Its brands include Couche-Tard, Circle K and Kangaroo Express.
Its network expanded in 2017 with the acquisition of CST Brands Inc., which added 1,300 stores, including 666 in Texas.
Couche-Tard did not provide an outlook.
