CrossAmerica Partners Q3 net income, adjusted EBITDA fall on lower fuel volumes

Overview

• U.S. fuels distributor's Q3 net income and adjusted EBITDA declined yr/yr on lower fuel volumes

• Lower fuel volumes partly offset by higher merchandise gross profit and reduced operating expenses

• Company declared quarterly distribution of $0.5250 per unit

Outlook

• Company did not provide specific financial guidance for upcoming quarters or full year in its press release

Result Drivers

• LOWER FUEL VOLUMES - Co said declines in both retail and wholesale motor fuel volumes drove lower earnings

• MERCHANDISE MARGINS - Co said higher merchandise gross profit and improved merchandise margin percentage partly offset fuel volume declines

• LOWER REAL ESTATE GAINS - Co said net income was further reduced by lower gains from real estate optimization

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the oil & gas refining and marketing peer group is "buy."

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 24 three months ago

Reuters Recommended Reads

• Nov 4 - US crude, fuel inventories surge as demand hits 1-year high, EIA says

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• Nov 4 - US to loan about a third of heating oil reserve in bid to tame prices

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)