Casey's General Stores Q1 Profit Declines, But Beats View

(RTTNews) - Casey's General Stores Inc. (CASY) on Monday reported a 6 percent decline in profit for the first quarter from last year, as higher expenses and a decline in renewable fuel credits more than offset an increase in revenues.

However, earnings per share for the quarter beat analysts' expectations and revenues matched their estimates. Shares of the convenience-store operator gained more than 3 percent in extended trades.

Robert Myers, Chairman and CEO of Casey's said, "Strong sales helped offset a $7.2 million reduction in renewable fuel credit values, which impacted diluted earnings per share by almost 12 cents. We are off to a great start on our annual goals, and we were able to grow inside gross profit dollars by 12.9% compared to the first quarter of last year."

The Ankeny, Iowa-based company's net income for the first quarter was $52.29 million or $1.34 per share, down from $55.71 million or $1.43 per share in the same period last year.

On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $1.24 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter increased 9 percent to $2.29 billion from $2.11 billion in the year-ago period and matched analysts' consensus estimate of $2.29 billion.

Casey's same-store gasoline gallons sold were up 3 percent for the quarter, with an average margin of 19.6 cents per gallon. The company sold 12.5 million renewable fuel credits for $5.7 million during the quarter. Total gallons sold for the quarter rose 9 percent to 464.21 million gallons.

The company affirmed that its goal for fiscal 2015 is to increase same-store gallons sold to 1 percent with an average margin of 15.3 cents per gallon. It also plans to build or acquire 72 to 108 stores, and replace 25 existing stores.

Grocery and other merchandise same-store sales for the quarter rose 7.7 percent, while prepared food and fountain same-store sales climbed 11.1 percent.

Operating expenses for the quarter increased 13 percent to $244.32 million, due mainly to new and replaced stores as well as recent store acquisitions.

At its September meeting, Casey's board of directors declared a quarterly dividend of $0.20 per share. The dividend is payable November 17, 2014 to shareholders of record on November 3, 2014.

CASY closed Monday's trading at $70.50, down $0.38 or 0.54 percent on a volume of 0.32 million shares. However, in after hours, the stock gained $2.50 or 3.55 percent to $73.00.