Casey's Profit Rises - Update

(RTTNews) - Casey's General Stores Inc (CASY) on Wednesday reported a higher second-quarter profit, driven by same-store sales growth across fuel, grocery and prepared food categories. However, the company's revenue for the quarter fell shy of Wall Street estimates.

"Total inside sales were up 13.6 percent and total fuel gallons sold were up 8.7 percent for the quarter," said Robert Myers, the company's chief executive officer. "The positive sales performance, along with strong fuel margins, helped offset food commodity pressures the company has experienced throughout the year."

Casey's, based in Ankeny, Iowa, posted quarterly net income of $49.9 million or $1.28 per share, compared with $39.4 million or $1.01 per share last year.

On average, 10 analysts polled by Thomson Reuters expected earnings of $1.17 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the second quarter rose to $2.15 billion from $2.02 billion a year ago. Analysts expected revenues of $2.18 billion for the quarter.

Analysts expected revenue of $2.18 billion for the second quarter.

During the quarter, the company's same-store gallons sold were up 2.3 percent with an average margin of 19.5 cents per gallon.

As for grocery and other merchandise, same-store sales were up 6.6 percent with an average margin of 32.3 percent, Casey's said in a statement.

Same-store sales for prepared food and fountain were up 11.1 percent with an average margin of 59.3 percent.

Casey's has been expanding its store count, aiming to build or acquire 72 to 108 stores and replace 25 existing stores annually. As of the end of the second quarter, the company opened 21 new stores and acquired 29 stores.

At its December meeting, the company's board declared a quarterly dividend of $0.20 per share.

CASY closed Wednesday at $82.70, down $0.97 or 1.16%, on a volume of 229k shares on the Nasdaq. In after hours, the stock gained $1.55 or 1.87%.