Casey's General Stores Inc. (CASY) Monday reported a lower profit for third quarter, as revenue growth was offset by higher operating costs. Earnings and revenues for the period missed analysts' expectations.
Ankeny, Iowa-based Casey's third-quarter profit dropped to $15.5 million or $0.40 per share from $16.7 million or $0.43 per share last year. On average, eight analysts polled by Thomson Reuters expected earnings of $0.47 per share for the quarter. Analysts' estimates typically exclude special items.
The convenience stores operator said its revenues for the quarter grew to $1.66 billion from $1.58 billion last year. Analysts expected revenues of $1.71 billion for the quarter.
Third quarter same-store gasoline gallons sold were up 0.6 percent with an average margin of 13.8 cents per gallon. Grocery same-store sales rose 3.2 percent, while prepared foods same-store sales rose 11.6 percent
For the third quarter, operating expenses were up 12.2 percent to $189.9 million from $169.2 million last year.
Chief Executive Robert Myers said, "The quarter was adversely impacted by a challenging cigarette environment. However we did experience improved cigarette sales throughout the third quarter and continue to drive prepared food sales with several operational initiatives being implemented within our store base."
At its March meeting, the Board of Directors declared a quarterly dividend of $0.165 per share, payable May 15 to shareholders of record on May 1.
CASY closed Monday at $57.40, down $0.10 or 0.17%, on the Nasdaq. The stock rose $0.51 or 0.89% in after hours.
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