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Here's How Casey's (CASY) is Placed Ahead of Q2 Earnings
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Casey's General Stores, Inc. (CASY - Free Report) is likely to register an increase in the top line when it reports second-quarter fiscal 2022 numbers on Dec 7, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $3,154 million, indicating an improvement of 42.3% from the prior-year reported figure.
However, the bottom line of this operator of convenience stores is expected to decrease year over year. Although the Zacks Consensus Estimate for second-quarter earnings per share has increased 5% to $2.92 over the past seven days, the figure still suggests a decline from earnings of $3.00 in the year-ago period.
This Ankeny, IA-based company has a trailing four-quarter earnings surprise of 26.1%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 12.7%.
Key Factors to Note
Casey's price and product optimization strategies, increased penetration of private brands, and digital engagements comprising mobile app and online ordering capabilities are commendable. The curbside pickup option and Casey’s reward program have been benefiting the overall performance. The company has been increasing online grocery items at all outlets. It has also partnered with DoorDash and Uber Eats for delivery services. Clearly, these factors are likely to have favorably impacted the company’s to-be-reported quarter’s top line.
Casey’s Grocery & General Merchandise category might have contributed to the company’s second-quarter top-line performance. The Zacks Consensus Estimate for sales for the category is pegged at $786 million, which suggests an increase of 9.4% from the prior-year reported figure. The consensus mark indicates a jump of 3.5% in same-store sales.
Again, the company’s Prepared Food & Dispensed Beverage category may have positively impacted total revenues. The Zacks Consensus Estimate for sales for the category stands at $316 million, which indicates a jump of 9.4% from the prior-year reported figure. Also, the consensus mark suggests growth of 4.7% in same-store sales.
With the resumption of economic activities, things have started to improve. Remarkably, the Zacks Consensus Estimate suggest an increase of 13.6% in total gallons sold during the quarter under review. It indicates growth of 3.2% in fuel gallons same-store sales. As a result, sales at the Fuel category might have risen year over year. The Zacks Consensus Estimate for sales for the Fuel category is pegged at $2,029 million, which suggests year-over-year increase of 70%.
In spite of aforementioned tailwinds, concerns related to higher operating expenses cannot be ignored. This may be due to increased store-level operating hours and costs related to the ongoing pandemic. Also, any deleverage in commodity costs and wage pressures might have weighed on margins. On its last earnings call, management guided year-over-year decline in second-quarter fiscal 2022 earnings due to higher operating expenses and depreciation.
Casey's General Stores, Inc. Price, Consensus and EPS Surprise
Our proven model predicts an earnings beat for Casey's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casey's has a Zacks Rank #2 and an Earnings ESP of +1.72%.
3 More Stocks With Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +1.37% and a Zacks Rank of 2. The company is expected to register top and bottom line growth when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for LULU’s quarterly revenues is pegged at $1.43 billion, which suggests growth of 28.1% from the prior-year quarter.
The Zacks Consensus Estimate for lululemon’s quarterly earnings moved up by a penny in the last 30 days to $1.39 per share, suggesting a 19.8% increase from the year-ago reported number. LULU has a trailing four-quarter earnings surprise of 25.2%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.79% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings of $2.59 per share suggests growth of 13.1% from the year-ago quarter’s reported figure.
Costco’s top line is expected to rise year over year. The consensus mark for revenues is pegged at $49.75 billion, indicating an increase of 15.1% from the figure reported in the year-ago quarter. COST has a trailing four-quarter earnings surprise of 7.7%, on average.
Academy Sports and Outdoors (ASO - Free Report) currently has an Earnings ESP of +49.78% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports third-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings of $1.16 per share suggests growth of 27.5% from the year-ago quarter’s reported figure.
Academy Sports and Outdoors’s top line is anticipated to rise year over year. The consensus mark for revenues stands at $1.50 billion, indicating an increase of 11.4% from the figure reported in the year-ago quarter. ASO has a trailing four-quarter earnings surprise of 91%, on average.
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Here's How Casey's (CASY) is Placed Ahead of Q2 Earnings
Casey's General Stores, Inc. (CASY - Free Report) is likely to register an increase in the top line when it reports second-quarter fiscal 2022 numbers on Dec 7, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $3,154 million, indicating an improvement of 42.3% from the prior-year reported figure.
However, the bottom line of this operator of convenience stores is expected to decrease year over year. Although the Zacks Consensus Estimate for second-quarter earnings per share has increased 5% to $2.92 over the past seven days, the figure still suggests a decline from earnings of $3.00 in the year-ago period.
This Ankeny, IA-based company has a trailing four-quarter earnings surprise of 26.1%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 12.7%.
Key Factors to Note
Casey's price and product optimization strategies, increased penetration of private brands, and digital engagements comprising mobile app and online ordering capabilities are commendable. The curbside pickup option and Casey’s reward program have been benefiting the overall performance. The company has been increasing online grocery items at all outlets. It has also partnered with DoorDash and Uber Eats for delivery services. Clearly, these factors are likely to have favorably impacted the company’s to-be-reported quarter’s top line.
Casey’s Grocery & General Merchandise category might have contributed to the company’s second-quarter top-line performance. The Zacks Consensus Estimate for sales for the category is pegged at $786 million, which suggests an increase of 9.4% from the prior-year reported figure. The consensus mark indicates a jump of 3.5% in same-store sales.
Again, the company’s Prepared Food & Dispensed Beverage category may have positively impacted total revenues. The Zacks Consensus Estimate for sales for the category stands at $316 million, which indicates a jump of 9.4% from the prior-year reported figure. Also, the consensus mark suggests growth of 4.7% in same-store sales.
With the resumption of economic activities, things have started to improve. Remarkably, the Zacks Consensus Estimate suggest an increase of 13.6% in total gallons sold during the quarter under review. It indicates growth of 3.2% in fuel gallons same-store sales. As a result, sales at the Fuel category might have risen year over year. The Zacks Consensus Estimate for sales for the Fuel category is pegged at $2,029 million, which suggests year-over-year increase of 70%.
In spite of aforementioned tailwinds, concerns related to higher operating expenses cannot be ignored. This may be due to increased store-level operating hours and costs related to the ongoing pandemic. Also, any deleverage in commodity costs and wage pressures might have weighed on margins. On its last earnings call, management guided year-over-year decline in second-quarter fiscal 2022 earnings due to higher operating expenses and depreciation.
Casey's General Stores, Inc. Price, Consensus and EPS Surprise
Casey's General Stores, Inc. price-consensus-eps-surprise-chart | Casey's General Stores, Inc. Quote
What Does the Zacks Model Unveil?
Our proven model predicts an earnings beat for Casey's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casey's has a Zacks Rank #2 and an Earnings ESP of +1.72%.
3 More Stocks With Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +1.37% and a Zacks Rank of 2. The company is expected to register top and bottom line growth when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for LULU’s quarterly revenues is pegged at $1.43 billion, which suggests growth of 28.1% from the prior-year quarter.
The Zacks Consensus Estimate for lululemon’s quarterly earnings moved up by a penny in the last 30 days to $1.39 per share, suggesting a 19.8% increase from the year-ago reported number. LULU has a trailing four-quarter earnings surprise of 25.2%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.79% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings of $2.59 per share suggests growth of 13.1% from the year-ago quarter’s reported figure.
Costco’s top line is expected to rise year over year. The consensus mark for revenues is pegged at $49.75 billion, indicating an increase of 15.1% from the figure reported in the year-ago quarter. COST has a trailing four-quarter earnings surprise of 7.7%, on average.
Academy Sports and Outdoors (ASO - Free Report) currently has an Earnings ESP of +49.78% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports third-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings of $1.16 per share suggests growth of 27.5% from the year-ago quarter’s reported figure.
Academy Sports and Outdoors’s top line is anticipated to rise year over year. The consensus mark for revenues stands at $1.50 billion, indicating an increase of 11.4% from the figure reported in the year-ago quarter. ASO has a trailing four-quarter earnings surprise of 91%, on average.