Casey's Profit Falls Despite Revenue Growth - Update

(RTTNews) - Casey's General Stores (CASY) Monday reported a decline in fourth-quarter profit as the company continued to expend on store acquisitions and replacements, even as revenues increased in line with Wall Street estimates.

The Ankeny, Iowa-based company posted quarterly net income of $22.8 million or $0.59 per share, compared with $23.3 million or $0.60 per share last year.

On average, 12 analysts polled by Thomson Reuters expected earnings of $0.53 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the fourth quarter climbed to $1.92 billion from $1.81 billion a year ago. Analysts expected revenues of $1.92 billion for the quarter.

Casey's same-store gasoline gallons sold were up 1.8 percent for the quarter, with an average margin of 13.8 cents per gallon. The company's 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.

Grocery and other merchandise same-store sales were up 7.2 percent, and prepared food and fountain same-store sales climbed 12.1 percent.

Operating expenses for the quarter grew about 10 percent, due mainly to new store construction, acquisition and replacement activity. The company also incurred depreciation and amortization costs.

Casey's appointed Terry Handley as its president in addition to the current role of chief operating officer. Handley has been with the company for over three decades and has served in capacities including director of Marketing and vice president of Food Service.

Casey's stock closed Monday at $74.77, up $2.42 or 3.34%, on a volume of 0.27 million shares on the Nasdaq. In after hours, the stock dropped $0.09 or 0.12%.