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Things You Need to Know Before Casey's (CASY) Q4 Earnings

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Casey's General Stores, Inc. (CASY - Free Report) is scheduled to report fourth-quarter fiscal 2019 results on Jun 11, after market closes. In the last reported quarter, the company delivered a positive earnings surprise of 29.9%. Notably, in the trailing four quarters, this operator of convenience stores has outperformed the Zacks Consensus Estimate by an average of 8.5%. Let’s delve deeper and analyze the factors likely to influence of upcoming quarterly release.

How are Estimates Faring?

The Zacks Consensus Estimate for fourth-quarter fiscal 2019 earnings is pegged at 42 cents, indicating a decline from 51 cents a share reported in the year-ago quarter. Meanwhile, the consensus mark has slid 7 cents in the past 60 days. For revenues, the consensus estimate stands at $2,132 million, suggesting growth of 2.1% from the year-ago quarter’s tally.

For fiscal 2019, the consensus estimates for top and bottom lines are pegged at $9.3 billion and $5.20, respectively.

Factors Likely to Drive Results

Casey's remains on track with its value creation plan to improve sales. This includes new fleet card program, price and product optimization, loyalty program, digital engagements comprising mobile app and online ordering capabilities, cost containment efforts as well as capital reallocation plan.

However, the company is grappling with soft fuel gallons same-store sales. Fuel gallons same-store sales decreased 3.4% during the third quarter of fiscal 2019 against 3.8% growth witnessed in the year-ago quarter. Management now envisions fiscal 2019 fuel gallons same-store sales to decline in the band of 0.5-2%.

We also remained concerned about higher operating and interest expenses. For fiscal 2019, Casey’s expect 7.5-9.5% increase in operating expenses. Certainly, any increase in operating expenses may hurt margins. Further, any rise in wholesale fuel costs and higher input costs remain concerns.

Caseys General Stores, Inc. Price, Consensus and EPS Surprise

 

Caseys General Stores, Inc. Price, Consensus and EPS Surprise

Caseys General Stores, Inc. price-consensus-eps-surprise-chart | Caseys General Stores, Inc. Quote

What our Model Says?

Our proven model does not show that Casey's is likely to beat estimates this quarter. A stock needs to have — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) as well as a positive Earnings ESP — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Though Casey's has a Zacks Rank #3, its Earnings ESP of -42.17% makes surprise prediction difficult.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may consider as our model shows that these have the right combination of elements to post earnings beat.

General Mills (GIS - Free Report) has an Earnings ESP of +1.18% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fastenal Company (FAST - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #3.

Constellation Brands (STZ - Free Report) has an Earnings ESP of +4.42% and a Zacks Rank #3.

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