Casey’s General Stores (CASY) has reported financial results that surpassed Wall Street’s expectations.
The U.S. convenience store operator announced fiscal fourth-quarter earnings per share (EPS) of $4.37 U.S., which was well above the $3.31 U.S. a share forecast among analysts.
Revenue of $4.57 billion U.S. beat the Wall Street consensus of $4.33 billion U.S. Sales in the quarter were up 14% year-over-year.
Management attributed the strong results to fuel gross profits that grew 29% from a year earlier as more people gassed up at a Casey’s location.
Same-store sales in the latest quarter increased 5.5%, above Wall Street‘s 4.9% expectation. This performance was helped by the company’s pizza sales as well as gas sales.
Casey’s receives most of its revenue from gasoline sales. Fuel same-store gallons increased 1.5% with a fuel margin of 46.9 cents U.S. per gallon in the quarter.
Gasoline prices at the pump have surged this year. Since the start of the Iran war in late February, the average price of a gallon of gasoline in the U.S. has risen 39%.
In terms of guidance, Casey’s said that it expects fiscal 2027 same-store sales to increase 2% to 5% with an inside margin above 42%.
The company also forecasts same-store fuel gallons sold to be down 1% to up 1% in the coming fiscal year. The company also sees earnings growth of 8% to 10%.
Wall Street had same-store sales growth of 3.9% penciled in for the company.
Casey’s also raised its quarterly dividend by 14% to $0.65 U.S. a share.
Casey’s began as a general store in Iowa in 1968 and is today the third-largest convenience store operator in the U.S., with more than 2,900 locations.
CASY stock has risen 55% in the last 12 months to trade at $761.18 U.S. per share.
