Fuel margins are likely to be under pressure in the fourth quarter of fiscal year 2019 (released July 9), anticipates Mark Petrie of CIBC World Markets.
Rising oil prices West Texas Intermediate (WTI) has boosted the cost of bulk fuel, says the analyst. He anticipates fuel margins in the United States will be 16 US cents per gallon while he previously forecast 18 US cents.
Petrie expects earnings per share to be $ 0.50 per share, down 16% from the same period last year. Before the note, he was anticipating a profit of US $ 0.61, a threshold that is still the consensus of analysts.
The analyst believes that the high valuation of the stock encourages pause, but he maintains his recommendation “outperform”. He notes that the company is on a good start and that the outlook remains healthy. He adds that the chances of an acquisition are “very likely”, without specifying by how long.
