Overview

* Metro fiscal Q3 sales rise 3.3% yr/yr, but miss analysts' expectations, per LSEG data

* Adjusted EPS for fiscal Q3 misses consensus, despite 12.6% yr/yr growth

* Company opened 5 new food stores, continuing expansion of discount banners

Outlook

* Metro Inc ( MTRAF ) focuses on realizing efficiency gains after supply chain investments

* Company faces uncertain economic environment impacting operations

* Metro Inc ( MTRAF ) plans retail network expansion in coming years

* Company emphasizes value delivery through merchandising and loyalty offers

Result Drivers

* RETAIL NETWORK - Higher sales in retail network drove a 3.3% increase in Q3 sales

* PHARMACY SALES - Pharmacy same-store sales rose 5.5%, driven by prescription drugs and over-the-counter products

* STORE EXPANSION - Opened 5 new food stores, continuing discount banner expansion

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss C$6.87 C$6.92

bln bln (8

Analysts

)

Q3 Miss C$1.52 C$1.53

Adjusted (8

EPS Analysts

)

Q3 EPS C$1.48

Q3 C$331.80

Adjusted mln

Net

Income

Q3 Net C$323

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the food retail & distribution peer group is "buy."

* Wall Street's median 12-month price target for Metro Inc ( MTRAF ) is C$105.50, about 0.5% below its August 12 closing price of C$106.03

* The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release:

(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.)