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Casey's Shares Fall as Fiscal First-Quarter Same-Store Sales Growth Misses Street Views

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Casey's Shares Fall as Fiscal First-Quarter Same-Store Sales Growth Misses Street Views

Casey's General Stores (CASY) shares fell early Wednesday as the convenience store operator's fiscal first-quarter same-store sales growth slowed and missed Wall Street estimates, even though earnings and revenue topped expectations.

Inside same-store sales rose 3.2% for the quarter ended July, compared with a gain of 4.3% the year before, the company said late Tuesday. The consensus on FactSet was for an increase of 4.1%. Grocery and general merchandise same-store sales growth decelerated to 2.7% from 3.8%.

The stock dropped 8% in the most recent premarket activity.

Despite the slowdown, the key performance indicators of inside same-store sales remain resilient and reflect Casey's "differentiated positioning and more affluent customer base" at a time when multiple convenience store operators have flagged incremental consumer pressure, RBC Capital Markets said in a client note.

Casey's net income climbed to $7.37 per share from $5.77 in the prior-year quarter, ahead of the Street's view of $6.78. Total revenue increased to $5.68 billion from $4.57 billion, surpassing the average analyst estimate of $5.56 billion.

"We are off to a great start on our three-year strategic plan, highlighted by a nearly 28% increase in diluted EPS," Chief Executive Darren Rebelez said in a statement.

In June, the company announced a new three-year strategic plan that included expanding its food and beverage business and adding at least 400 stores through a combination of acquisitions and new-store development.

Total fuel gallons sold increased 2.5% year over year in the quarter due to higher store count, partially offset by a 0.3% decrease in same-store gallons sold, the company said.

"On the fuel side, our team's robust capabilities helped us navigate a volatile environment and produced strong results," Rebelez said.

For fiscal 2027, Casey's continues to anticipate inside same-store sales to grow between 2% and 5% with an inside margin above 42%. The Street is expecting the metric to come in at 4.1%.

The company's results put it in a strong position to achieve its full-year guidance, RBC said.

Last month, retail gas station operator Murphy USA (MUSA) reported better-than-expected second-quarter results.

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