What caused ARKO's drastic earnings miss in Q3 2024?

Arko Corp. (ARKO) experienced a significant earnings miss in Q3 2024, with diluted EPS coming in at $0.07, which represents a substantial decrease from the previous year's $0.17. This shortfall can be attributed to several key factors:

1. **Revenue Decline**: The company's total revenue fell by 0.13% to $2.28 billion in Q3 2024, compared to $2.62 billion in the same period of the previous year. This decline in revenue contributes to the lower earnings.

|code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code|
|---|---|---|---|---|---|---|---|
|ARKO|ARKO.O|ARKO|2023 Q4|2.23316E9|1126000||186|
|ARKO|ARKO.O|ARKO|2024 Q1|2.072454E9|-594000|-0.02|186|
|ARKO|ARKO.O|ARKO|2024 Q2|2.388163E9|1.4063E7|0.11|186|
|ARKO|ARKO.O|ARKO|2024 Q3|2.279236E9|9674000|0.07|186|

2. **Net Income Reduction**: Arko's net income dropped by 55% to $9.67 million in Q3 2024, down from $21.49 million in Q3 2023. The substantial decrease in net income is a clear indicator of the company's financial strain during the quarter.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|ARKO|ARKO.O|ARKO|2023 Q4|-91.24416796267496|2.4348670093455373||186|
|ARKO|ARKO.O|ARKO|2024 Q1|76.49386624455876|-0.7681125556381243|33.33333333333333|186|
|ARKO|ARKO.O|ARKO|2024 Q2|-2.8731265971406863|-3.2796020964375874|0|186|
|ARKO|ARKO.O|ARKO|2024 Q3|-54.9795234549516|-13.074406553030563|-58.82352941176471|186|

3. **Analyst Estimates**: Arko has a history of missing analyst estimates. For instance, in Q2 2024, the company missed revenue and earnings estimates, with revenue coming in $39 million below expectations and EPS 0.07 below estimates. This trend suggests underlying issues within the company that affect its performance.
4. **Market Conditions**: While specific market conditions are not detailed in the report, industry trends and macroeconomic factors can significantly impact a company's financial performance. It is possible that Arko faced unique challenges in Q3 2024 that affected its revenue and profitability.

In summary, Arko's Q3 2024 earnings miss is likely a result of a combination of revenue decline, net income reduction, and missing analyst estimates, possibly influenced by specific market conditions.