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Casey's Q3 Earnings Top Estimates, Inside Same-Store Sales Grow 3.7%
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Casey's General Stores, Inc. (CASY - Free Report) reported solid third-quarter fiscal 2025 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. While revenues increased, earnings remained flat year over year.
The company delivered a strong third quarter, driven by robust sales growth both inside and outside the store. Continued operational efficiencies led to a reduction in same-store labor hours for the 11th consecutive quarter.
Casey's Quarterly Performance: Key Insights
CASY, one of the leading convenience store chains in the United States, posted quarterly earnings of $2.33 per share, which surpassed the Zacks Consensus Estimate of $1.76 while remaining flat year over year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Casey's General Stores, Inc. Price, Consensus and EPS Surprise
The company reported total revenues of $3,903.6 million, which beat the Zacks Consensus Estimate of $3,786 million. The metric increased 17.3% from $3,329.2 million posted in the year-ago period.
Total inside sales jumped 15.3% year over year to $1,400.4 million in the fiscal quarter. This was due to strong performances in the prepared food and dispensed beverage categories, which included hot sandwiches and bakery as well as non-alcoholic beverages in the grocery and general merchandise segment. Inside same-store sales increased 3.7% compared with a 4.1% rise registered in the year-ago period. We had expected inside same-store sales to grow 3.9% in the quarter under review.
Insight Into CASY’s Margins & Expenses Performance
Gross profit rose 16% year over year to $912.6 million in the fiscal quarter. The gross margin decreased 20 basis points to 23.4%.
The total inside gross profit increased 14.3% year over year to $573.1 million. Meanwhile, the inside margin decreased 40 basis points to 40.9%, impacted by the addition of Fikes-acquired stores and a coffee promotion highlighting new flavor profiles.
EBITDA increased 11.4% year over year to $242.4 million in the quarter under discussion, driven by higher inside and fuel gross profit. However, this was partially offset by increased operating expenses from 254 additional stores, a one-time Fikes deal and integration costs of approximately $13 million. EBITDA margin declined 30 basis points to 6.2%, slightly below our expectation of 6.3%.
The company witnessed a rise of 18% in operating expenses of $670.2 million. This rise was caused by the operation of 254 additional stores compared with the same period last year, which accounted for about 14% of the increase, including one-time deal and integration costs of approximately $13 million from the Fikes acquisition. An additional 1% of the rise came from same-store employee expenses, where higher labor rates were partially offset by reduced same-store labor hours. We had estimated a 19.7% increase in operating expenses.
Decoding CASY’s Segmental Performance
Prepared Food & Dispensed Beverage sales rose 13.7% year over year to $397.2 million, missing our estimate of $400.1 million. Same-store sales decreased 4.7% compared with 7.5% in the year-ago quarter. The Prepared Food & Dispensed Beverage margin declined 180 bps to 57.8% from 59.6% in the year-ago period.
Grocery & General Merchandise sales increased 15.9% to $1,003.3 million in the fiscal quarter, surpassing our estimate of $986.7 million. Same-store sales increased 3.3% compared with 2.8% growth in the year-ago quarter. The Grocery & General Merchandise margin grew 30 bps to 34.2% from 33.9% in the year-ago period.
We note that Fuel sales increased 15.4% year over year to $2,366.8 million in the fiscal quarter, surpassing our estimate of $2,355.4 million. Fuel gallons sold jumped 20.4% to $829.8 million, driven by a higher store count and a 1.8% rise in same-store gallons. We anticipated an increase of 22% in fuel gallons sold. The fuel margin decreased to 36.4 cents per gallon from 37.3 cents in the prior-year period.
Casey's, which operated 2,893 stores as of Jan. 31, 2025, ended the fiscal quarter with cash and cash equivalents of $394.8 million, long-term debt and finance lease obligations (net of current maturities) of $2.44 billion and shareholders’ equity of $3.42 billion.
In the fiscal third quarter, the company did not repurchase any shares and has around $295 million available under its current buyback authorization.
Sneak Peek Into CASY’s Outlook
For fiscal 2025, management now expects EBITDA growth to be at least 11%, up from the previous rise of 10%. It expects to invest $500 million in fiscal 2025 compared with the previous estimation of $550 million.
The company still anticipates total operating expenses to increase 11-13%. Casey's expects inside same-store sales to increase 3-5% and an inside margin to be comparable with fiscal 2024. Management foresees same-store fuel gallons sold between negative 1% and positive 1%. The company anticipates opening about 270 stores in fiscal 2025.
Shares of this Zacks Rank #3 (Hold) company have lost 10.9% in the past three months compared with the industry’s 12.3% decline.
The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and earnings implies growth of 12% and 24.3%, respectively, from the year-ago reported numbers. SFM delivered a trailing four-quarter earnings surprise of 15.1%, on average.
Farmer Bros. Co. (FARM - Free Report) engages in the roasting, wholesale, equipment servicing and distribution of coffee, tea and other allied products in the United States. It currently holds a Zacks Rank #2 (Buy). FARM delivered a trailing four-quarter earnings surprise of 35%, on average.
The Zacks Consensus Estimate for Farmer Bros.’ current financial-year sales and earnings implies growth of 3.3% and 25%, respectively, from the year-ago period’s reported figure.
Post Holdings, Inc. (POST - Free Report) operates as a consumer-packaged goods holding company in the United States and internationally. It currently carries a Zacks Rank #2. POST delivered a trailing four-quarter earnings surprise of 22.3%, on average.
The Zacks Consensus Estimate for Post Holdings’ current fiscal-year sales and earnings indicates growth of 0.3% and 2.2%, respectively, from the prior-year reported levels.
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Casey's Q3 Earnings Top Estimates, Inside Same-Store Sales Grow 3.7%
Casey's General Stores, Inc. (CASY - Free Report) reported solid third-quarter fiscal 2025 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. While revenues increased, earnings remained flat year over year.
The company delivered a strong third quarter, driven by robust sales growth both inside and outside the store. Continued operational efficiencies led to a reduction in same-store labor hours for the 11th consecutive quarter.
Casey's Quarterly Performance: Key Insights
CASY, one of the leading convenience store chains in the United States, posted quarterly earnings of $2.33 per share, which surpassed the Zacks Consensus Estimate of $1.76 while remaining flat year over year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
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
The company reported total revenues of $3,903.6 million, which beat the Zacks Consensus Estimate of $3,786 million. The metric increased 17.3% from $3,329.2 million posted in the year-ago period.
Total inside sales jumped 15.3% year over year to $1,400.4 million in the fiscal quarter. This was due to strong performances in the prepared food and dispensed beverage categories, which included hot sandwiches and bakery as well as non-alcoholic beverages in the grocery and general merchandise segment. Inside same-store sales increased 3.7% compared with a 4.1% rise registered in the year-ago period. We had expected inside same-store sales to grow 3.9% in the quarter under review.
Insight Into CASY’s Margins & Expenses Performance
Gross profit rose 16% year over year to $912.6 million in the fiscal quarter. The gross margin decreased 20 basis points to 23.4%.
The total inside gross profit increased 14.3% year over year to $573.1 million. Meanwhile, the inside margin decreased 40 basis points to 40.9%, impacted by the addition of Fikes-acquired stores and a coffee promotion highlighting new flavor profiles.
EBITDA increased 11.4% year over year to $242.4 million in the quarter under discussion, driven by higher inside and fuel gross profit. However, this was partially offset by increased operating expenses from 254 additional stores, a one-time Fikes deal and integration costs of approximately $13 million. EBITDA margin declined 30 basis points to 6.2%, slightly below our expectation of 6.3%.
The company witnessed a rise of 18% in operating expenses of $670.2 million. This rise was caused by the operation of 254 additional stores compared with the same period last year, which accounted for about 14% of the increase, including one-time deal and integration costs of approximately $13 million from the Fikes acquisition. An additional 1% of the rise came from same-store employee expenses, where higher labor rates were partially offset by reduced same-store labor hours. We had estimated a 19.7% increase in operating expenses.
Decoding CASY’s Segmental Performance
Prepared Food & Dispensed Beverage sales rose 13.7% year over year to $397.2 million, missing our estimate of $400.1 million. Same-store sales decreased 4.7% compared with 7.5% in the year-ago quarter. The Prepared Food & Dispensed Beverage margin declined 180 bps to 57.8% from 59.6% in the year-ago period.
Grocery & General Merchandise sales increased 15.9% to $1,003.3 million in the fiscal quarter, surpassing our estimate of $986.7 million. Same-store sales increased 3.3% compared with 2.8% growth in the year-ago quarter. The Grocery & General Merchandise margin grew 30 bps to 34.2% from 33.9% in the year-ago period.
We note that Fuel sales increased 15.4% year over year to $2,366.8 million in the fiscal quarter, surpassing our estimate of $2,355.4 million. Fuel gallons sold jumped 20.4% to $829.8 million, driven by a higher store count and a 1.8% rise in same-store gallons. We anticipated an increase of 22% in fuel gallons sold. The fuel margin decreased to 36.4 cents per gallon from 37.3 cents in the prior-year period.
CASY’s Financial Snapshot: Cash, Debt & Equity Overview
Casey's, which operated 2,893 stores as of Jan. 31, 2025, ended the fiscal quarter with cash and cash equivalents of $394.8 million, long-term debt and finance lease obligations (net of current maturities) of $2.44 billion and shareholders’ equity of $3.42 billion.
In the fiscal third quarter, the company did not repurchase any shares and has around $295 million available under its current buyback authorization.
Sneak Peek Into CASY’s Outlook
For fiscal 2025, management now expects EBITDA growth to be at least 11%, up from the previous rise of 10%. It expects to invest $500 million in fiscal 2025 compared with the previous estimation of $550 million.
The company still anticipates total operating expenses to increase 11-13%. Casey's expects inside same-store sales to increase 3-5% and an inside margin to be comparable with fiscal 2024. Management foresees same-store fuel gallons sold between negative 1% and positive 1%. The company anticipates opening about 270 stores in fiscal 2025.
Shares of this Zacks Rank #3 (Hold) company have lost 10.9% in the past three months compared with the industry’s 12.3% decline.
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Stocks to Consider
Sprouts Farmers (SFM - Free Report) , which is engaged in the retailing of fresh, natural and organic food products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and earnings implies growth of 12% and 24.3%, respectively, from the year-ago reported numbers. SFM delivered a trailing four-quarter earnings surprise of 15.1%, on average.
Farmer Bros. Co. (FARM - Free Report) engages in the roasting, wholesale, equipment servicing and distribution of coffee, tea and other allied products in the United States. It currently holds a Zacks Rank #2 (Buy). FARM delivered a trailing four-quarter earnings surprise of 35%, on average.
The Zacks Consensus Estimate for Farmer Bros.’ current financial-year sales and earnings implies growth of 3.3% and 25%, respectively, from the year-ago period’s reported figure.
Post Holdings, Inc. (POST - Free Report) operates as a consumer-packaged goods holding company in the United States and internationally. It currently carries a Zacks Rank #2. POST delivered a trailing four-quarter earnings surprise of 22.3%, on average.
The Zacks Consensus Estimate for Post Holdings’ current fiscal-year sales and earnings indicates growth of 0.3% and 2.2%, respectively, from the prior-year reported levels.