Parkland Corporation (TSX: PKI) disclosed that it expects its third-quarter results to fall short of its prior expectations, citing a difficult “macroeconomic environment and volatile product prices”.
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In a press release, the company stated that it will record non-recurring wholesale inventory and risk management losses of approximately $65 million due to lowered pricing in the U.S.
However, the company reiterated its FY2022 adjusted EBITDA guidance and expects it to fall within the previously guided range of $1.6 billion and $1.7 billion.
Based in Canada, Parkland Corp. distributes and markets refined fuels, lubricants, and other petroleum products.
Is Parkland a Buy?
Overall, Parkland stock commands a Strong Buy consensus rating based on five unanimous Buys. Parkland Corp’s average price target of C$44.20 implies 61.02% upside potential from current levels.
Further, PKI stock boasts a score of 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
Concluding Thoughts
The company is scheduled to release its Q3 results on November 3. Given the bullish Wall Street stance on the stock, the current one-off challenge presents a good buying opportunity for PKI shares.
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