Empire (TSE:EMP.A) Issues Earnings Results

Empire (TSE:EMP.A) released its quarterly earnings results on Thursday. The company reported C$0.72 earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of C$7.89 billion for the quarter. Empire had a net margin of 2.18% and a return on equity of 12.94%.

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

• Empire reported adjusted Q3 EPS of CAD 0.72 (up 16.1% YoY) with food sales +3% and food same‑store sales +2%, driven by strong full‑service and discount performance and improved cost discipline.
• The company recorded a CAD 746 million impairment tied to its e‑commerce update (Calgary CFC closure) but expects the restructuring plus a national DoorDash partnership to produce ~CAD 95 million of annualized operating income (about two‑thirds to the bottom line) beginning in Q4.
• Loyalty was bolstered by adding Shell Canada fuel to Scene+ (Alberta rollout began; national rollout May 26), which management says will drive member growth and higher share‑of‑wallet.
• Retail media (Empire Media+) is gaining traction since its Nov 2024 launch, with revenues up ~50% and increasing supplier commitments—management positions it as a meaningful growth engine.
• A refreshed executive structure aligns leadership around four “obsessions” (customers, stores, growth, cost), elevates pharmacy to the executive team, and is intended to clarify accountability and accelerate execution.

Empire Stock Performance

Shares of TSE EMP.A opened at C$48.75 on Thursday. The company has a quick ratio of 0.29, a current ratio of 0.79 and a debt-to-equity ratio of 135.51. The stock’s 50 day moving average price is C$47.49 and its two-hundred day moving average price is C$48.98. Empire has a 52-week low of C$42.26 and a 52-week high of C$58.32. The stock has a market capitalization of C$11.22 billion, a P/E ratio of 16.53, a PEG ratio of 16.20 and a beta of 0.01.

Analyst Ratings Changes

Several research analysts recently commented on EMP.A shares. Desjardins cut their price target on Empire from C$60.00 to C$53.00 and set a “buy” rating on the stock in a research note on Friday, December 12th. TD Securities lowered their price objective on Empire from C$58.00 to C$50.00 and set a “hold” rating for the company in a research note on Friday, December 12th. National Bank Financial dropped their price objective on Empire from C$58.00 to C$54.00 and set a “sector perform” rating on the stock in a report on Friday, December 12th. Canadian Imperial Bank of Commerce cut their target price on Empire from C$59.00 to C$53.00 and set an “outperform” rating on the stock in a research report on Friday, December 12th. Finally, Scotiabank decreased their price target on shares of Empire from C$57.00 to C$52.00 and set an “outperform” rating for the company in a research report on Friday, December 12th. Three analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of C$52.83.

Empire Company Profile

Empire Co Ltd key businesses are food retailing, investments, and other operations. The food retailing division operates through Empire’s subsidiary Sobeys and represents nearly all of the company’s income. This segment owns, affiliates, or franchises more than 1,500 stores in 10 provinces, under retail banners including Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods, Lawton’s Drug Stores, and multiple retail fuel locations. The company’s investment and other operations segment include the investment in Crombie REIT, which is an open-ended Canadian real estate investment trust, as well as the Genstar Development Partnership.