Profit up 23 percent in 3rd quarter for Casey’s General Stores

Casey’s General Stores profit up in 3rd qtr

ANKENY, Iowa — Casey’s General Stores reported Monday that its profit grew 23 percent in the third quarter, though bad weather hampered business.

The company, which runs convenience stores throughout the midwest, reported that it earned $17.2 million, or 34 cents per share, for the quarter that ended Jan. 31. That’s up from $14 million, or 28 cents per share, for the same period in the prior year.

Revenue grew 31 percent to $1.11 billion.

Analysts polled by Thomson Reuters expected the company to earn 38 cents per share for the quarter on revenue of $1.12 billion.

The company said margins remained strong for gasoline but higher retail prices and tough weather conditions hurt gas sales. Sales of gasoline at stores open at least a year, considered a key financial indicator as it strips away the impact of new stores, fell 2.9 percent.

Sales of groceries at established stores grew 1.7 percent and sales of prepared foods grew 1.4 percent.

Casey’s President and CEO Robert J. Myers said it was a good environment for acquisitions during the year as the company was able to close on several small multi-store deals. By the end of the quarter, the company had acquired 20 stores and completed construction of 10 new stores.

Shares of Casey’s fell 36 cents to close at $31.50 Monday and lost another 98 cents to $30.52 in after-hours trading.