Lower fuel sales impact analyst expectations
- Empire reports rise in profit in Q3
- Revenue remains unchanged
- Lower fuel sales impact revenue
- Net income increases to C$134.2 million
- Adjusted earnings fall short of analyst forecasts
- Sales miss analyst expectations
- Growth seen in discount and full-service
- Same-store sales, excluding fuel, accelerate
- Empire plans to invest in store network renovations
- Capital spend budgeted at C$775 million
Empire reported a rise in profit in its fiscal third quarter, despite flat revenue which missed analyst targets. The Canadian retail grocer, housing brands Sobeys and FreshCo, saw net income increase to C$134.2 million, up from C$125.7 million in the same quarter last year. Adjusted earnings fell short of analyst forecasts. Sales remained virtually unchanged at C$7.49 billion, missing expectations of a rise to C$7.57 billion. The company experienced growth in discount and full-service, but lower fuel sales due to the sale of retail fuel sites in Western Canada impacted revenue. Same-store sales, excluding fuel, accelerated at 1.9% compared to 0.6% growth last year. Empire plans to invest in store network renovations, with a budget of C$775 million for capital spend in the fiscal year.
Factuality Level: 8
Factuality Justification: The article provides specific financial information about Empire’s fiscal third quarter performance, including net income, earnings per share, and sales figures. It also mentions the reasons behind the rise in profit despite flat revenue, such as lower fuel sales. The information is based on actual financial results and analyst forecasts, making it factual and objective.
Noise Level: 3
Noise Justification: The article provides relevant information about Empire’s financial performance in its fiscal third quarter, including details about profit, revenue, earnings, and sales. It also mentions the reasons behind the flat revenue and lower fuel sales, as well as the company’s future investment plans. The article stays on topic and supports its claims with data and examples. However, it lacks in-depth analysis, accountability, and actionable insights, which prevents it from receiving a higher rating.
Financial Relevance: Yes
Financial Markets Impacted: The financial markets impacted by this news article are the Canadian retail industry and the companies within it, specifically Empire, Sobeys, and FreshCo.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The news article discusses the financial performance of Empire, a Canadian retail grocer, in its fiscal third quarter. It mentions a rise in profit despite flat revenue, which missed analyst targets due to lower fuel sales. There is no mention of any extreme events or their impact.
Public Companies: Empire (N/A)
Key People: Adriano Marchese (N/A)
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