Metro (TSE:MRU) Issues Earnings Results

Metro (TSE:MRU) posted its earnings results on Wednesday. The company reported C$1.11 EPS for the quarter, FiscalAI reports. Metro had a net margin of 4.44% and a return on equity of 13.93%. The business had revenue of C$5.11 billion during the quarter.

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

• Q2 sales were CAD 5.1 billion (+4.1%), adjusted EBITDA (ex‑asset sale) rose 6% to CAD 488.5M (9.6% of sales), and adjusted diluted EPS increased 8.8% to CAD 1.11, reflecting solid top‑ and bottom‑line performance.
• A labour strike in Québec began March 30 and is disrupting produce distribution; the company says contingency plans have stabilized store supply but confirmed sales were impacted and that the full financial effect (recorded in Q3) will be disclosed later.
• Pharmacy momentum continued with same‑store sales up 5.1% and prescriptions +6.1%, driven by organic growth, specialty meds and GLP‑1s, and the rollout of pharmacy renovations (15 of 35 projects completed so far).
• Gross margin improved to 20.1% (vs 20.0% a year ago) aided by distribution centre productivity and higher private‑label penetration, while online sales grew 19.8% and management says e‑commerce efficiencies are narrowing the profitability gap.
• Rising fuel costs are starting to affect distribution and, if sustained, could add roughly CAD 5 million per quarter of incremental expense, posing a potential headwind to margin if not offset or passed through.

Metro Stock Down 0.5%

MRU opened at C$89.88 on Friday. The company has a debt-to-equity ratio of 69.33, a quick ratio of 0.41 and a current ratio of 1.42. Metro has a fifty-two week low of C$89.30 and a fifty-two week high of C$109.20. The firm’s fifty day moving average is C$95.21 and its 200 day moving average is C$96.24. The stock has a market cap of C$19.16 billion, a price-to-earnings ratio of 19.88, a price-to-earnings-growth ratio of 4.06 and a beta of 0.34.

Insider Activity

In related news, insider Dan Gabbard sold 2,978 shares of Metro stock in a transaction on Friday, February 13th. The shares were sold at an average price of C$96.67, for a total transaction of C$287,883.26. Following the transaction, the insider owned 12,344 shares in the company, valued at approximately C$1,193,294.48. The trade was a 19.44% decrease in their position. Also, insider Richard Pruneau sold 2,018 shares of Metro stock in a transaction on Thursday, January 29th. The shares were sold at an average price of C$90.87, for a total transaction of C$183,375.66. Following the transaction, the insider owned 12,433 shares in the company, valued at approximately C$1,129,786.71. This trade represents a 13.96% decrease in their position. Insiders have sold a total of 11,844 shares of company stock worth $1,096,119 in the last quarter. Corporate insiders own 0.14% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. National Bank Financial cut their price objective on shares of Metro from C$106.00 to C$105.00 and set a “sector perform” rating for the company in a research report on Thursday. TD Securities cut their price objective on shares of Metro from C$118.00 to C$113.00 and set a “buy” rating for the company in a research report on Wednesday, January 28th. Scotiabank downgraded shares of Metro from an “outperform” rating to a “hold” rating and set a C$103.00 price objective for the company. in a research report on Thursday, April 9th. BMO Capital Markets cut their price objective on shares of Metro from C$110.00 to C$105.00 and set an “outperform” rating for the company in a research report on Thursday. Finally, Canadian Imperial Bank of Commerce cut their price objective on shares of Metro from C$101.00 to C$97.00 and set a “neutral” rating for the company in a research report on Thursday. Two research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and an average price target of C$103.63.

Key Metro News

Here are the key news stories impacting Metro this week:

• Positive Sentiment: Q2 results showed rising earnings driven by improved margins, share buybacks and pharmacy growth — clear fundamental supports that can help earnings momentum and shareholder returns. Metro Q2 2026 Earnings Rise On Margins, Buybacks And Pharmacy Growth
• Positive Sentiment: BMO Capital Markets cut its target (C$110 → C$105) but kept an “outperform” rating — the firm still implies ~16.8% upside from current levels, which may limit downside and attract value-seeking investors. Analyst Ratings (BayStreet.CA)
• Neutral Sentiment: Analysis pieces are asking whether recent weakness makes MRU attractive to buyers — these notes can draw investor interest but don’t by themselves change fundamentals. Is Metro (TSX:MRU) Now Attractive After Recent Share Price Weakness?
• Neutral Sentiment: Market commentary flagged that Metro underperformed and the stock fell on recent trading — this reflects the market reaction to the combined newsflow (earnings + analyst revisions) rather than new company developments. Metro Inc. stock falls Wednesday, underperforms market
• Negative Sentiment: Multiple brokerages trimmed price targets this week, which tends to weigh on sentiment: CIBC lowered to C$97 (neutral), Scotia to C$96 (sector perform), and Desjardins to C$97 (hold). Those cuts signal tempered expectations and can pressure the stock. Analyst Ratings (BayStreet.CA) Desjardins Downgrade (Tickerreport)

About Metro

Metro is one of the largest grocery retailers in Canada. With its 2018 acquisition of Jean Coutu, it also boasts a meaningful drugstore footprint. Noteworthy grocery banners include Metro, Metro Plus, Super C, and Food Basics, while its pharmacies primarily operate under the Jean Coutu and Brunet trademarks. It utilizes an array of business models, but it most frequently acts as either a retailer, operating individual stores, or a franchiser, licensing its trademarks and supplying merchandise to franchisees.