Caseys General Stores Earnings: Falls Short of the Street Estimate

Caseys General Stores Inc. (NASDAQ:CASY) reported its results for the fourth quarter. 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. rose to $23.1 million (60 cents per share) vs. $22.8 million (60 cents per share) in the same quarter a year earlier. This marks a rise of 1.3% from the year-earlier quarter.

Revenue: Rose 13.1% to $1.75 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Caseys General Stores Inc. fell short of the mean analyst estimate of 67 cents per share. Analysts were expecting revenue of $1.74 billion.

Quoting Management: “In the fourth quarter, the gas margin was down nearly 2 cents per gallon from the same period a year ago, which reduced basic earnings per share by approximately 12 cents,” said President and CEO Robert J Myers. “We were pleased with our ability to offset this decline with strong sales and margin gains inside our stores. Inside gross profit dollars for the quarter were up nearly 19% and we are optimistic about our growth potential in fiscal 2013 with the various operational initiatives we are implementing.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 25.8%, with the biggest boost coming in the first quarter when revenue rose 37.6% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 29.7% and in the second quarter, the figure rose 73.5%.

For two quarters in a row, the company has come in under analyst estimates. In the third quarter, it missed expectations by one cent with net income of 43 cents versus a mean estimate of net income of 44 cents per share.

The company’s cost of sales rose to 86% of revenue, just 13.1% from the year-earlier quarter.

Looking Forward: Next quarter’s results are expected to be more favorable for the company. Over the past sixty days, the average estimate for the first quarter of the next fiscal year has reached $1.13 per share, up from $1.10. In the past month, the average estimate for the fiscal year has fallen from $3.12 per share to $3.11 abs.

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

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