Casey&Apos;S (CASY) Reports Second Quarter Earnings Results

Casey’s General Stores, Inc. (CASY) today announced its financial results for the most recent quarter, showcasing a strong performance that exceeded expectations. The company reported earnings per share of $5.53, beating the consensus estimate of $5.19 by $0.34. Additionally, Casey’s achieved quarterly revenue of $4.51 billion, surpassing the revenue estimate of $4.49 billion by approximately $13.6 million.

Key Highlights:

• Diluted EPS increased by 14.0% to $5.53, with net income rising to $206.3 million.
• Inside same-store sales grew by 3.3%, with total inside gross profit up 13.5% to $703.4 million.
• Fuel gross profit increased by 20.9% to $377.4 million, with a fuel margin of 41.6 cents per gallon.
• The company plans to open at least 80 new stores in fiscal 2026, contributing to a total of approximately 500 stores over three years.
• Fiscal 2026 EBITDA is projected to increase by 15% to 17%.

Summary: Casey’s General Stores, Inc. reported strong financial results for the second quarter of fiscal 2026, with net income reaching $206.3 million, a 14.0% increase year-over-year, and diluted earnings per share rising to $5.53. The growth was driven by a 3.3% increase in inside same-store sales and a significant 20.9% rise in fuel gross profit, attributed to higher sales volumes and improved margins. CEO Darren Rebelez emphasized the company’s successful execution of its strategic plan, stating, “Casey’s delivered a great second quarter highlighted by strong sales and traffic growth across the entire store.”

Looking ahead, Casey’s has updated its fiscal 2026 outlook, projecting EBITDA to increase by 15% to 17% and same-store sales to rise by 3% to 4%. The company is committed to its expansion strategy, planning to open at least 80 new stores through a combination of mergers, acquisitions, and new constructions, aiming for a total of approximately 500 stores over the next three years. This growth strategy is designed to solidify Casey’s position as a leading convenience store chain in the United States.

Casey’s General Stores, Inc. (CASY) has shown a notable resilience in its stock price, with a year-over-year increase of 35.31%, reflecting strong investor confidence. Over the past six months, the stock has surged by 28.50%, indicating a robust upward trend that suggests positive market sentiment. However, in the short term, the stock experienced a slight dip of 0.63% over the past week, which may be a natural correction after its impressive gains. Fundamental metrics also paint a promising picture; the company boasts a price-to-earnings ratio of 36.37, which, while on the higher side, is supported by a solid two-year compound annual growth rate (CAGR) in earnings per share of 12.30%. Additionally, Casey’s has demonstrated strong revenue growth with a CAGR of 6.35% and an impressive free cash flow growth of 33.92%, highlighting its operational efficiency. The return on invested capital stands at 10.23%, and a net profit margin of 3.50% suggests that the company is effectively managing its costs. Overall, while the recent price fluctuations may raise eyebrows, the underlying financial health of Casey’s General Stores indicates a company well-positioned for continued growth.

Casey’s General Stores, Inc., together with its subsidiaries, operates convenience stores under the Casey’s and Casey’s General Store names. Its stores offer a selection of food, including freshly prepared foods, such as pizza, donuts, and sandwiches; beverages; tobacco and nicotine products; health and beauty aids; automotive products; and other nonfood items. The company’s stores also provide motor fuel for sale on a self-service basis; and gasoline and diesel fuel. In addition, its stores offer various products, include soft drinks, energy, water, sports drinks, juices, coffee, and tea and dairy products; beer, wine, and spirits; snacks, candy, packaged bakery, and other food items; ice, ice cream, meals, and appetizers; health and beauty aids, electronic accessories, housewares, and pet supplies; and lotto/lottery and prepaid cards. Further, the company operates two stores that sells tobacco and nicotine products; one liquor store; and one grocery store. As of April 30, 2022, it operated 2,452 convenience stores. Casey’s General Stores, Inc. was founded in 1959 and is headquartered in Ankeny, Iowa.