Shares of Casey’s General Stores fall after fiscal 3rd-quarter results miss estimates

Casey’s General Stores fall after 3Q results miss

PORTLAND, Ore. — Shares of Casey’s General Stores fell Tuesday after the convenience store operator reported fiscal third-quarter results below analyst expectations.

The company, based in Ankeny, Iowa, reported late Monday that its quarterly profit jumped 23 percent to $17.2 million, or 34 cents per share. Revenue in the period ended Jan. 31 grew 31 percent to $1.11 billion.

But analysts expected profit of 38 cents per share on revenue of $1.12 billion, according to a poll by Thomson Reuters.

Casey’s said margins remained strong for gasoline but higher retail prices and tough weather conditions hurt gas sales. Additionally, while sales of grocery and prepared foods grew, margins were tighter.

BMO Capital Markets analyst Karen Short wrote in a research note that the margin trends were concerning. She pointed to food and grocery as the key to the results coming in lower than expected. However, she noted that the company is “extremely well managed.”

Shares of Casey’s fell $1.50, or 4.8 percent, to $30 in afternoon trading Tuesday. The stock has ranged from $18.54 to $33.06 over the past year.

(This version corrects trading and annual share range in last paragraph.)