The operating issues I highlighted in my last write-up on Core-Mark (CORE)
continued to weigh on the company through fourth quarter earnings, with
the shares down another third or so since the time of that article.
Management has continued to struggle to generate attractive incremental
margins from new chain store wins, while Berkshire Hathaway’s (BRK.A) (NYSE:BRK.B) McLane continues to compete aggressively for business and cigarette volumes continue to erode.
First
quarter results offer some hope that maybe management and the sell-side
have their expectations dialed in correctly, as there wasn’t a negative
pre-announcement, results came in more or less on target, and
management reiterated its full year guidance. While Core-Mark has been a
big disappointment for a while now, perhaps management’s operating
improvement initiatives are finally gaining some traction.
Read more here:
Simply Not Screwing Up Again Feels Like A Win With Core-Mark
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