Casey's General Stores Inc. (CASY) said Tuesday its fourth quarter profit rose from last year, led by higher revenues that were somewhat offset by increased operating costs and lower gasoline margins.
Casey's earnings for the quarter missed Street estimates, while revenues came in ahead of expectations. Disappointed with the results, investors dragged down Casey's shares over 5 percent in after-hours trade on the Nasdaq.
Ankeny, Iowa-based Casey's reported fourth quarter net income of $23 million, compared to $22.8 million last year. On a per share basis, earnings remained flat with last year at $0.60.
On average, six analysts polled by Thomson Reuters expected earnings of $0.67 per share for the quarter. Analysts' estimates typically exclude special items.
Casey's, which operates convenience stores under the Casey's General Store, HandiMart, and Just Diesel names, reported quarterly revenues of $1.75 billion, compared to $1.55 billion last year. Analysts expected revenues of $1.74 billion for the quarter.
Gasoline same-store gallons sales rose 2.5 percent from last year, but average margin slid about 2 cents to 13.7 cents per gallon.
"In the fourth quarter, the gas margin was down nearly 2 cents per gallon from the same period a year ago, which reduced basic earnings per share by approximately 12 cents," said CEO Robert Myers.
Grocery & Other Merchandise same-store sales rose 8.5 percent from a year ago. Average margin was 33 percent, compared to 31 percent last year.
Prepared Food & Fountain same-store sales were up 16.8 percent from the prior year. Average margin was 60.8 percent, up 60 basis points from last year.
Casey's increased its quarterly dividend to $0.165 per share, payable August 15 to shareholders of record on August 1.
For the fiscal year 2013, Casey's expects same-store gasoline gallons sales to grow 1 percent; grocery and other merchandise 6.2 percent; and prepared food and fountain 11 percent.
CASY closed Tuesday at $59.18, up $0.51 or 0.87%, on the Nasdaq. In after hours, the stock lost $3.08 or 5.20%.
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