Casey's Q3 Profit Drops, Revenue Misses View

(RTTNews) - Casey's General Stores Inc. (CASY) Monday reported lower third-quarter profit, amid higher expenses. Revenues improved from last year, but missed Wall Street estimates.

Net income declined to $14.67 million from $15.46 million in the prior year. Earnings per share dropped to $0.38 from $0.40. On average, 13 analysts polled by Thomson Reuters expected earnings of $0.49 per share. Analysts' estimates typically exclude special items.

Total revenue grew to $1.79 billion from $1.662 billion in the prior year. Analysts expected revenues of $1.84 billion. CEO Robert Myers said, "Third quarter sales were strong throughout all of our categories despite challenging weather during the quarter. Our same-store fuel sales are exceeding industry-wide trends and gross profit from inside the store was up over 11% for both the quarter and year."

Gasoline sales improved to $1.256 billion and same-store gallons sold were up 3.8 percent, compared to a 0.6 percent rise last year, with an average margin of 14.4 cents per gallon.

In Grocery and Other Merchandise, sales for the quarter were higher at $364.85 million and same-store sales grew 6.5 percent with an average margin of 31.1 percent.

Prepared Food and Fountain reported sales growth at $158.2 million and same-store sales growth of 10.7 percent with an average margin of 60.8 percent.

The company reported increased operating expenses and depreciation and amortization for the quarter as well as higher federal and state income taxes.

The Board of Directors declared a quarterly dividend of $0.18 per share, payable May 15 to shareholders of record on May 1.

CASY closed up 2.3 percent at $67.87 on Monday and slid 2.4 percent in the extended trade.