Metro (TSE:MRU), one of the largest Canadian grocery retailers, reported its Q3-2023 earnings results earlier today. Metro’s results were positive, as both revenues and earnings per share (EPS) beat estimates. As a result, the stock is slightly higher today.
Revenues for Q3 2023 reached approximately C$6.428 billion, ahead of the C$6.196 billion consensus estimate and up 9.6% compared to last year’s figure of C$5.865 billion. Additionally, earnings per diluted share came in at C$1.35, above expectations of C$1.29 and a 14.4% increase from last year’s EPS of C$1.18.
Moreover, operating income before depreciation and amortization for the quarter came in at C$612.3 million, 9.5% higher year-over-year, and food same-store sales grew by 9.4%, while pharmacy same-store sales increased by 5.9%. What was also impressive was that online food sales increased by 99% compared to last year, driven mainly by new partnership sales.
Looking at the first 40 weeks of Fiscal 2023, revenue reached C$15.653 billion, up 8.3% year-over-year, while adjusted diluted net earnings per share were C$3.31, a 14.1% increase from C$2.90 in 2022.
Is Metro Stock a Buy, According to Analysts?
According to analysts, Metro stock comes in as a Hold based on three unanimous Hold ratings assigned in the past three months. The average MRU stock price target of C$78.33 implies 11% upside potential.
