Caseys General Stores Earnings: Increasing Costs Tighten Margins, Yet Tops Estimates

Caseys General Stores Inc. (NASDAQ:CASY) posted lower net income in the second quarter compared with a year-earlier period. Casey’s General Stores and its wholly owned subsidiaries operate convenience stores under the names “Casey’s General Store,” “HandiMart” and “Just Diesel” in nine Midwestern states, mainly Iowa, Missouri, and Illinois.

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Caseys General Stores Inc. Earnings Cheat Sheet

Results: Net income for Caseys General Stores Inc. fell to $32.9 million (85 cents per share) vs. $37.6 million (98 cents per share) a year earlier. This is a decline of 12.7% from the year-earlier quarter.

Revenue: Rose 7.2% to $1.91 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Caseys General Stores Inc. beat the mean analyst estimate of 47 cents per share. It beat the average revenue estimate of $1.74 billion.

Quoting Management: “Our prepared food program is doing exceptionally well, but the cigarette environment remains very challenging for retailers,” said Chairman and CEO Robert J. Myers. “We are diligently evaluating the competitive landscape and will maintain a disciplined approach when making cigarette price adjustments.”

Key Stats:

The company’s net income has fallen for two quarters in a row. In the first quarter, net income fell 0.9% from the year-earlier quarter.

The company beat estimates last quarter after meeting expectations in the first quarter with net income of 85 cents per share.

Revenue rose last quarter after dropping in the previous quarter. Revenue fell 0.3% to $1.87 billion in the first quarter from the year earlier.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the third quarter is 64 cents per share, a drop from 69 cents. Over the past sixty days, the average estimate for the fiscal year has reached $2.97 per share, a decline from $3.20.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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