Casey's General Stores, Inc. (CASY) said Tuesday after the markets closed that its first quarter profit rose 53% from last year, mainly helped by strong gas margins and enhanced profitability inside the stores. The company's quarterly earnings per share also breezed past Wall Street expectations, sending its shares up by more than 8% in after hours trading.
The Ankeny, Iowa-based convenience stores operator reported net income for the first quarter of $44.2 million or $0.87 per share, compared to $28.8 million or $0.57 per share for the year-ago quarter.
On average, 7 analysts polled by Thomson Reuters expected the company to earn $0.60 per share for the first quarter.
Total revenue for the first quarter fell 24% to $1.19 billion from $1.57 billion in the same quarter last year. Five analysts had a consensus revenue estimate of $1.19 billion for the first quarter.
Operating expenses for the quarter declined 0.3% to $132.4 million from $132.7 million a year ago.
For the first quarter, credit card fees and transportation costs combined were down almost $5 million from last year.
"Lower retail fuel prices also brought about significant relief in our operating expenses," Casey's President and CEO Robert said in a statement.
In the quarter, same-store gasoline gallons sold were up 3.2% with an average margin of 15.7 cents per gallon. The average retail price per gallon in the first quarter was $2.35, which is 38% lower than the average retail price in the first quarter of last year. Total gallons sold rose to 335.8 million from 318.2 million a year ago.
Grocery same-store sales were up 6.4% for the first quarter, with an average margin of 34.3%, compared to 34% last year. Total grocery sales rose 8.4% to $297.4 million.
Same-store sales of prepared food & fountain rose 6.6% in the first quarter, with a margin of 63.8%.
The company's goal for fiscal 2010 is to increase the total number of Casey's stores by 4%. By the end of the first quarter, the company opened 5 newly constructed stores and replaced an additional 5 stores.
Casey's said its board has declared a quarterly dividend of $0.085 per share at its September meeting, reflecting the increase approved in June. The dividend is payable November 16 to shareholders of record on November 2.
Casey's shares, which have traded in a range of $18.32 to $31.11 over the past year, closed Tuesday regular trading session at $28.19, down 13 cents. The stock is currently gaining $2.33 or 8.27% in after hours trading.
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