Casey's General Stores Profit Down - Update

(RTTNews) - Casey's General Stores Inc. (CASY) on Monday reported a drop in profit for the third quarter, as revenues were below-than-expected and operating costs rose.

Ankeny, Iowa-based Casey's third-quarter profit dropped to $38.1 million or $0.97 per share from $39.3 million or $1.01 per share last year. On average, 11 analysts polled by Thomson Reuters expected earnings of $0.94 per share for the quarter.

Revenues for the quarter dropped to $1.57 billion from $1.67 billion last year. Analysts had a consensus revenue estimate of $1.59 billion for the quarter.

For the quarter, the company's same-store gallons rose 1.6 percent with an average margin of 18.1 cents per gallon. Fuel margins finished above goal for the third quarter due to elevated RIN values as well as a decline in wholesale fuel costs towards the end of the quarter," said Myers. "Same-store gallons sold dipped slightly below our goal in the third quarter."

As for grocery and other merchandise, same-store sales were up 7.1 percent with an average margin of 31.2 percent, while same-store sales for prepared food and fountain were up 6.0 percent with an average margin of 62.0 percent.

For the third quarter, operating expenses rose 8.7 percent to $259.6 million.

CASY closed Monday's trading at $102.36, down $3.45 or 3.26%, on the Nasdaq. The stock further dropped $0.86 or 0.84% in the after-hours trade.