- Casey’s reported a strong 2Q earnings per share (EPS) of $4.85, outperforming the estimate of $4.30 and last year’s $4.24.
- Overall revenue fell by 2.9% year-over-year to $3.95 billion, slightly missing the estimate of $4.03 billion.
- Fuel revenue decreased by 8.8% year-over-year to $2.41 billion, coming in below the expected $2.47 billion.
- The Grocery & General Merchandise segment saw an 8.8% year-over-year increase, reaching $1.05 billion, surpassing the estimate of $1.04 billion.
- The Prepared Food & Dispensed Beverage segment experienced a 9.2% increase year-over-year to $417.8 million, nearly meeting the $418.2 million estimate.
- Other revenue declined by 9% year-over-year to $64.6 million, underperforming the estimate of $70.3 million.
- Same-store gallons dropped by 0.6%, which was below the estimate of a 0.57% increase.
- Same-store grocery sales rose by 3.6%, slightly under the projected 3.89% increase.
- Same-store prepared food sales grew by 5.2%, surpassing the 5.15% estimate.
- Fuel gross profit increased by 1.1% year-over-year to $312.3 million, exceeding the $309.1 million estimate.
- Casey’s anticipates $15 to $20 million in additional one-time costs related to the Fikes transaction during the second half of fiscal 2025.
- Total operating expenses are forecasted to rise by 11% to 13% for the fiscal year, with $25 to $30 million from one-time costs attributed to the Fikes deal.
- Same-store operating expenses, excluding credit card fees, are expected to increase by only 2% for the year.
- Casey’s expects EBITDA to grow by at least 10% for fiscal 2025, factoring in the Fikes acquisition.
- Net interest expense is projected to be roughly $90 million for the year.
- The prepared food and dispensed beverage category contributed significantly to inside same-store sales, with hot sandwiches and cold dispensed beverages performing exceptionally well.
- The company received 8 buy ratings, 4 hold ratings, and 2 sell ratings.
Casey’s General Stores on Smartkarma
Analyst coverage on Smartkarma for Casey’s General Stores includes insights from Baptista Research. In their report titled “Casey’s General Stores Inc.: Leveraging Financial Health for Strategic Acquisitions! – Major Drivers,” the analysts highlight the positive outlook of Casey’s operations, financials, and strategic direction. Led by CEO Darren Rebelez and CFO Stephen Bramlage, the company demonstrated a strong start to fiscal year 2025, with notable progress in store operations and financial metrics. Baptista Research aims to assess various factors influencing Casey’s price in the near future and conducts an independent valuation using a Discounted Cash Flow (DCF) methodology.
Furthermore, Baptista Research presents another report on Casey’s titled “Casey’s General Stores Inc.: Expanding Market Share Through Innovation In Food Service! – Major Drivers.” Highlighting the company’s performance in the fiscal fourth quarter and full year of 2024, Casey’s showcased robust results with strategic expansions and operational enhancements. Noteworthy achievements include a record diluted earnings per share at $13.43, a 13% year-over-year increase, and a new high in net income at $502 million. The report emphasizes Casey’s General Stores‘ resilience and proactive strategies in navigating a volatile retail landscape.
A look at Casey’s General Stores Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Casey’s General Stores shows a positive long-term outlook. With a Growth score of 4, the company is well-positioned for expansion and improvement over time. Its Momentum score of 4 also suggests that the company is gaining traction and could continue to perform well in the future. Additionally, the Resilience score of 3 indicates that Casey’s General Stores is relatively stable and able to weather economic uncertainty.
Although the Value and Dividend scores are lower at 2 each, this does not necessarily detract from the overall positive outlook for the company. Investors looking for long-term growth potential may find Casey’s General Stores to be a promising investment opportunity based on these Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
