Q: hi and thanks
should one be concerned with the downturn ATD is going through right now? Is it maybe related to the outlook for energy and the transition from gasoline to electric? ATD is facing big costs going forward converting or adding charging stations.
thanks Joe
should one be concerned with the downturn ATD is going through right now? Is it maybe related to the outlook for energy and the transition from gasoline to electric? ATD is facing big costs going forward converting or adding charging stations.
thanks Joe
5i Research Answer:
The decline can't be ignored, but we would not consider it related to the EV shift. Yes, EVs are growing, but their market share remains very low and it will still be a very long time before they are dominant. The recent weakness in ATD's results are more related to fuel margins and a general slowdown in consumer spending, which we are starting to see at other companies as well. While there will be costs to ATD to convert, it has the advantage of locations. We did not like the last quarter much, but we do not think the five-to-ten year outlook has really changed that much.