Back to top

Image: Bigstock

Casey's (CASY) Provides Updates on Q3: What Else to Know

Read MoreHide Full Article

Casey’s General Stores, Inc. (CASY - Free Report) has issued updates on its third-quarter fiscal 2023. Management highlighted that the third-quarter-to-date performance is consistent with its expectations for the fiscal year.

The same-store inside sales for the same quarter are in the lower half of its annual range of a 5-7% increase. Same-store fuel gallons also remain near the low end of the annual range of a flat to 2% growth. Third-quarter-to-date fuel margins remain similar to the preceding quarter’s fuel margins. We note that the second-quarter fuel margin increased to 40.5 cents per gallon from 34.7 cents per gallon in the prior-year period.

Further, the total operating expense growth is likely to be near the low end of the annual band of a 9-10% jump, excluding the non-recurring item. We note that the company received nearly $15 million one-time payment from the resolution of legal matters. The proceeds will be treated as a reduction in operating expenses during the quarter under review. These proceeds were not included in the earlier issued operating expense guidance for the fiscal third quarter.

What’s More?

Casey's shares have appreciated 24.6% over the past year, outperforming the industry’s 19.2% growth. CASY’s price and product optimization strategies, increased penetration of private brands and digital capabilities are commendable. The company’s focus on technology advancements, merchandise ordering efficiency, inventory management along with data analytics position it well for future growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Meanwhile, Casey's digital engagements comprising mobile app and online ordering capabilities help create a seamless shopping experience and facilitate same-store sales growth. CASY’s cost-containment efforts, distribution efficiency and capital reallocation plan should help augment sales and drive growth.

Further, management remains optimistic about Casey's Rewards program which exceeded 5.8 million members. The company is also enhancing delivery capabilities via DoorDash and Uber Eats. Casey’s also utilizes Door Dash white label delivery, a third-party service that takes orders through its systems. The company continues to utilize its own delivery drivers and offers in-store and curbside pickup.

This Zacks Rank #1 (Strong Buy) company’s focus on technology advancements, merchandise ordering efficiency, inventory management, along with data analytics, position it well for growth. You can see  the complete list of today’s Zacks #1 Rank stocks here.

Other Solid Picks in Retail

We highlighted three top-ranked stocks, namely Tecnoglass (TGLS - Free Report) , Chico's FAS and Boot Barn (BOOT - Free Report) .

Tecnoglass manufactures and sells architectural glass,windows and aluminum products for residential and commercial construction industries. TGLS currently sports a Zacks Rank of 1.

The Zacks Consensus Estimate for Tecnoglass’ current financial-year sales and EPS suggests growth of 11.2% and 9%, respectively, from the year-ago reported figures. TGLS has a trailing four-quarter earnings surprise of 26.9%, on average.

Chico's FAS, an omnichannel specialty retailer, currently sports a Zacks Rank of 1. CHS has a trailing four-quarter earnings surprise of 87.5%, on average.

The Zacks Consensus Estimate for Chico's FAS’s current financial-year sales and EPS suggests growth of 19.6% and 127.5%, respectively, from the year-ago reported figures.

Boot Barn, a fashion retailer of apparel and accessories, currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 11.7%, on average.

The Zacks Consensus Estimate for Boot Barn’s current financial-year sales suggests growth of 11.8% from the year-ago reported figure.
 


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Boot Barn Holdings, Inc. (BOOT) - free report >>

Casey's General Stores, Inc. (CASY) - free report >>

Tecnoglass Inc. (TGLS) - free report >>

Published in