CROSSAMERICA PARTNERS LP (NYSE:CAPL) delivered second-quarter results that came in well above analyst expectations on both revenue and adjusted earnings, though the stock traded slightly lower in the after-market session.
Earnings versus estimates
The partnership reported revenue of approximately $1.18 billion for the quarter, sharply ahead of the analysts’ estimate of $746.1 million. On an adjusted non-GAAP basis, earnings per unit came in at $0.50, versus the $0.39 that the Street had projected.
| Measure | Reported | Analyst Estimate | Variance |
|---|---|---|---|
| Revenue | $1.18B | $746.1M | Beat by ~58% |
| Non-GAAP EPS | $0.50 | $0.39 | Beat by ~29% |
The size of the revenue beat is notable, though comparability may be affected by the inclusion of certain pass-through items. On the profit side, the earnings outperformance was driven by stronger fuel margins and expense discipline, according to the company.
Key quarterly metrics
- Net income: $20.8 million, down from $25.2 million in the prior-year quarter, primarily due to lower gains from real estate disposals.
- Adjusted EBITDA: $51.8 million, up from $37.1 million.
- Distributable cash flow: $33.6 million, up from $22.4 million.
- Distribution coverage: 1.68x for the current quarter and 1.39x on a trailing twelve-month basis.
- Leverage under the credit facility: 3.57x, compared with 3.65x a year earlier.
Retail segment gross profit rose to $85.7 million from $76.1 million, helped by a 20% increase in motor fuel gross profit and a higher merchandise margin percentage. Wholesale segment gross profit increased to $27.1 million from $24.9 million, driven by a 31% improvement in fuel margin per gallon, partially offset by lower volumes.
Market reaction
Despite the strong headline numbers, the units slipped about 0.8% after the market close. The modest pullback extends a weaker trend over the past month, during which the stock has declined roughly 6.4%. Investors may be focusing on the decline in reported net income, which was driven by a sharp drop in real estate gains, or on lower fuel gallon volumes across both segments.
The partnership maintained its quarterly distribution at $0.5250 per unit and noted it continued to pay down its credit facility during the quarter. It also amended its credit facility in July, extending the maturity date to 2031.
Management highlighted growth in merchandise margin and continued cost control, while acknowledging a volatile operating environment. No formal forward guidance was provided in the release, leaving the focus on the operational momentum.
For a deeper look at historical earnings trends, investors can review the earnings history page. To view updated estimates and projections for future periods, visit the forecast page.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
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CrossAmerica Partners LP (NYSE:CAPL) Beats Q2 Estimates, But Units Slip
CROSSAMERICA PARTNERS LP (NYSE:CAPL) delivered second-quarter results that came in well above analyst expectations on both revenue and adjusted earnings, though the stock traded slightly lower in the after-market session.
Earnings versus estimates
The partnership reported revenue of approximately $1.18 billion for the quarter, sharply ahead of the analysts’ estimate of $746.1 million. On an adjusted non-GAAP basis, earnings per unit came in at $0.50, versus the $0.39 that the Street had projected.
| Measure | Reported | Analyst Estimate | Variance | |---|---|---|---| | Revenue | $1.18B | $746.1M | Beat by ~58% | | Non-GAAP EPS | $0.50 | $0.39 | Beat by ~29% |
The size of the revenue beat is notable, though comparability may be affected by the inclusion of certain pass-through items. On the profit side, the earnings outperformance was driven by stronger fuel margins and expense discipline, according to the company.
Key quarterly metrics
Retail segment gross profit rose to $85.7 million from $76.1 million, helped by a 20% increase in motor fuel gross profit and a higher merchandise margin percentage. Wholesale segment gross profit increased to $27.1 million from $24.9 million, driven by a 31% improvement in fuel margin per gallon, partially offset by lower volumes.
Market reaction
Despite the strong headline numbers, the units slipped about 0.8% after the market close. The modest pullback extends a weaker trend over the past month, during which the stock has declined roughly 6.4%. Investors may be focusing on the decline in reported net income, which was driven by a sharp drop in real estate gains, or on lower fuel gallon volumes across both segments.
The partnership maintained its quarterly distribution at $0.5250 per unit and noted it continued to pay down its credit facility during the quarter. It also amended its credit facility in July, extending the maturity date to 2031.
Management highlighted growth in merchandise margin and continued cost control, while acknowledging a volatile operating environment. No formal forward guidance was provided in the release, leaving the focus on the operational momentum.
For a deeper look at historical earnings trends, investors can review the earnings history page. To view updated estimates and projections for future periods, visit the forecast page.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »