Empire (TSE:EMP.A) Releases Earnings Results

Empire (TSE:EMP.A) announced its quarterly earnings data on Thursday. The company reported C$1.04 earnings per share (EPS) for the quarter, FiscalAI reports. The business had revenue of C$8.47 billion for the quarter. Empire had a return on equity of 12.94% and a net margin of 2.18%.

Here are the key takeaways from Empire’s conference call:

• Q1 EPS rose 14.3% year over year to CAD 1.04, supported by sales growth, cost efficiencies, e-commerce improvements, share repurchases, and a pension settlement gain. EBITDA increased 6.1% to CAD 712 million, while the EBITDA margin expanded 28 basis points to 8.4%.
• Management raised its store-opening expectation to more than 25 locations in fiscal 2027, including four Mayrand stores, representing approximately 2% square-footage growth. Capital expenditures remain planned at roughly CAD 850 million, with about half directed to renovations and new-store expansion.
• E-commerce sales grew 11.3% year over year, with growth in both Voilà and third-party partnerships. Management expects faster future e-commerce growth through its “e-commerce 2.0” strategy and technology investments.
• Food sales increased 1.7%, with same-store sales up 1.2%, while gross margin excluding fuel was essentially flat amid higher supply-chain costs and fuel-related expenses. Consumers remain highly focused on value and affordability, although Empire said it is gaining share in full-service and maintaining its discount position.
• Empire maintained its expectation for adjusted EPS growth at the high end of its 8%–11% long-term framework for fiscal 2027, supported by gross-margin expansion and annual operating leverage. The company also repurchased approximately 2 million shares for CAD 95 million and expects CAD 90 million–CAD 110 million of fiscal 2027 income from equity investments and other income.

Empire Trading Down 3.1%

Shares of Empire stock opened at C$46.37 on Friday. The company has a current ratio of 0.79, a quick ratio of 0.29 and a debt-to-equity ratio of 135.51. The company has a fifty day simple moving average of C$49.09 and a 200-day simple moving average of C$48.79. The stock has a market cap of C$10.38 billion, a price-to-earnings ratio of 53.92, a PEG ratio of 16.20 and a beta of -0.29. Empire has a 12-month low of C$43.81 and a 12-month high of C$52.64.

Empire Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Friday, July 31st were issued a $0.2425 dividend. This represents a $0.97 annualized dividend and a dividend yield of 2.1%. The ex-dividend date was Wednesday, July 15th. This is a positive change from Empire’s previous quarterly dividend of $0.22. Empire’s dividend payout ratio (DPR) is currently 102.33%.

Wall Street Analysts Forecast Growth

EMP.A has been the subject of several analyst reports. Royal Bank Of Canada boosted their target price on Empire from C$55.00 to C$58.00 and gave the stock a “sector perform” rating in a research note on Friday, June 19th. Desjardins lifted their price objective on Empire from C$53.00 to C$56.00 and gave the company a “buy” rating in a research note on Sunday, June 21st. TD lifted their price objective on Empire from C$50.00 to C$53.00 and gave the company a “hold” rating in a research note on Friday, June 19th. Canadian Imperial Bank of Commerce boosted their price objective on Empire from C$54.00 to C$58.00 and gave the stock an “outperformer” rating in a research report on Friday, June 19th. Finally, National Bank Financial upped their target price on shares of Empire from C$55.00 to C$56.00 and gave the stock a “sector perform” rating in a research note on Wednesday, September 2nd. Three equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Empire has an average rating of “Hold” and an average price target of C$54.56.

Empire Company Profile

Empire Company Limited (TSX: EMP.A) is a Canadian company headquartered in Stellarton, Nova Scotia. Empire’s key businesses are food retailing, through wholly-owned subsidiary Sobeys Inc, and related real estate. With approximately $32 billion in annual sales and $17 billion in assets, Empire and its subsidiaries, franchisees and affiliates employ approximately 130,000 people. Additional financial information relating to Empire, including the Company’s Annual Information Form, can be found on the Company’s website at www.empireco.ca or on SEDAR+ at www.sedarplus.ca.