Casey's General Stores Inc.

Casey's General Stores Inc. (CASY) outperformed the broader market over the past year, receiving an extra boost in early March on a strong third quarter. The company’s solid fundamentals include an industry-leading dividend yield of 1.2%.

Company Description

Casey's General Stores, Inc. together with its subsidiaries, operate convenience stores under the Casey’s General Stores name in the Midwest states. It has operations in Iowa, Missouri, Illinois Kansas, Minnesota, Nebraska, South Dakota, Wisconsin, and Indiana. The company was founded in 1959 and is headquartered in Ankeny, Iowa.

Stellar Earnings

The company saw a solid third quarter. Earnings per share of 28 cents came in 47% ahead of the consensus estimate.

“We are pleased with the execution of our strategy,” said President and CEO Robert J. Myers. “We were able to exceed third quarter earnings from a year ago despite a gas margin decline of over 3.5 cents per gallon.”

The company has outperformed the market over the past year, receiving an extra boost after delivering the strong third-quarter results.

Wall Street is Bullish on CASY

Current fiscal year earnings projections of $1.74 per share are above the 2 months-ago level of $1.66. For the following year, earnings expectations of $1.80 were increased from last month’s $1.74 and $1.70 of 2 months ago.

CASY’s fiscal year ends in April, and the fourth-quarter report is scheduled for release on June 10.

Favorable Comparisons

CASY’s return on equity (ROE) of 13% is in line with the industry average. The company’s dividend yield of 1.2% stands out as most of CASY’s industry peers pay no income. Its net profit margin of 2% is also in line with the industry average.

Read the full analyst report on CASY