Casey's Profit Rises, But Misses Estimates - Update

(RTTNews) - Casey's General Stores Inc. (CASY) Monday reported a higher second-quarter profit, helped by demand for its gasoline and other merchandise, partly offset by new store construction costs. While quarterly earnings missed Wall Street estimates, revenue was in line expectations.

The company's stock is down 1.04 percent in after-hours trade on the Nasdaq.

During the quarter, Casey's same-store gasoline gallons sold were up 4.2 percent with an average margin of 16.7 cents per gallon.

The goal for fiscal 2014 is to increase same-store gallons sold 1.5 percent with an average margin of 15 cents per gallon, the company said.

As for grocery and other merchandise, same-store sales rose 10.2 percent, and prepared food and fountain same-store sales climbed 12.3 percent.

The Anteny, Iowa-based company posted quarterly net income of $41.3 million or $1.06 per share, compared with $32.86 million or $0.85 per share last year.

On average, 12 analysts polled by Thomson Reuters expected earnings of $1.14 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter climbed to $2.02 billion from $1.91 billion a year ago. Analysts expected revenues of $2.02 billion.

Operating expenses for the quarter grew about 14 percent, due to new store construction, acquisition and replacement activity, among other reasons.

Casey's stock closed Monday at $74.88, down $1.09 or 1.43%, on a volume of 333 thousand shares on the Nasdaq. In after hours, the stock dropped $0.78 or 1.04% at $74.10.