Caseys General Stores, Inc. Earnings Cheat Sheet: Beats Estimates

Caseys General Stores, Inc. (NASDAQ:CASY) reported net income above Wall Street’s expectations for the fourth quarter. Casey’s General Stores, Inc. and its wholly owned subsidiaries operate convenience stores under the name ‘Casey’s General Store’, ‘HandiMart’ and ‘Just Diesel’ in nine Midwestern states, mainly Iowa, Missouri, and Illinois.

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Caseys General Stores Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Caseys General Stores, Inc. rose to $22.8 million (60 cents/share) vs. $21.9 million (43 cents/share) in the same quarter a year earlier. A rise of 3.8% from the year earlier quarter.

Revenue: Rose 31.3% to $1.55 billion YoY.

Actual vs. Wall St. Expectations: CASY beat the mean analyst estimate of 50 cents/share. Estimates ranged from 42 cents per share to 54 cents per share.

Quoting Management: “We are pleased with our ability to drive double digit gross profit increases across all of our major categories during the fourth quarter,” stated President and CEO Robert J. Myers. “Despite the challenges impacting our industry, we are optimistic about our ability to continue to drive shareholder value next fiscal year.”

Key Stats:

The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 24%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 33.6% from the year earlier quarter.

Last quarter marked the fifth straight quarter that the company saw shrinking gross margins as gross margin fell two percentage points to 14% from the year earlier quarter. Over that time, margins have contracted on average 1.8 percentage points per quarter on a year-over-year basis.

Last quarter’s profit increase breaks a streak of three consecutive quarters of year-over-year profit decreases. In the third quarter, net income fell 25.3% from the year earlier while the figure dropped 35.4% three quarters ago and 15.6% four quarters ago.

Competitors to Watch: The Pantry, Inc. (NASDAQ:PTRY), Susser Holdings Corp. (NASDAQ:SUSS), The Kroger Co. (NYSE:KR), Weis Markets, Inc. (NYSE:WMK), AMCON Distributing Co. (AMEX:DIT), Ingles Markets, Inc. (NASDAQ:IMKTA), Winn-Dixie Stores, Inc. (NASDAQ:WINN), Wal-Mart (NYSE:WMT), Target (NYSE:TGT) and Whole Foods Market, Inc. (NASDAQ:WFM).

Stock Performance: Shares of CASY are at $41.03 per share.

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(Sources: YahooFinance, Xignite Financials)