RICHMOND - Convenience store operator Arko Corp . (NASDAQ:ARKO) reported lower third-quarter earnings that missed analyst expectations, as macroeconomic pressures continued to impact consumer spending.
The Fortune 500 company posted net income of $9.7 million for Q3 2024, down from $21.5 million in the same period last year. Adjusted earnings per share came in at $0.07, falling short of the $0.12 analyst consensus.
Revenue for the quarter was $2.28 billion, below estimates of $2.41 billion.
Adjusted EBITDA declined to $78.8 million from $87.3 million YoY, but landed at the midpoint of the company's previously issued guidance range of $70 million to $86 million.
"As our customers continue to face macroeconomic pressure related to inflation and elevated prices for everyday goods, we continue to focus on delivering essential value to our customers," said Arie Kotler, Chairman, President, and CEO of ARKO.
The company saw same-store merchandise sales decrease 7.7% YoY, while same-store fuel gallons sold fell 6.6%. However, merchandise margins improved to 32.8% from 31.7% last year.
Arko maintained its quarterly dividend of $0.03 per share, payable on December 3 to shareholders of record as of November 19.
For Q4 2024, the company expects adjusted EBITDA between $53 million and $63 million. This translates to full-year 2024 adjusted EBITDA guidance of $245 million to $255 million.
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