Casey’s General Stores (CASY) delivered a strong performance in its recent quarterly earnings report, exceeding analyst expectations and posting earnings per share of $4.83. This figure surpassed the Zacks Consensus Estimate of $4.54 per share, marking a 6.39% earnings surprise. The company’s earnings performance represents a significant improvement compared to the same period last year, where it reported earnings of $4.52 per share. This positive trend has continued over the past four quarters, with Casey’s exceeding consensus EPS estimates consistently.
In terms of revenue, Casey’s generated $4.1 billion for the quarter ended July 2024, falling slightly short of the Zacks Consensus Estimate by 0.34%. However, this revenue figure still represents a notable increase compared to the year-ago revenue of $3.87 billion. The company’s ability to surpass revenue expectations has been more inconsistent, with only one instance of exceeding consensus estimates over the past four quarters.
While the latest earnings report indicates positive performance, investors are likely to focus on the company’s future outlook, particularly in light of the dynamic retail landscape. The sustainability of Casey’s stock price movement will depend heavily on management’s guidance during the earnings call and future earnings expectations.
To understand the future prospects of Casey’s, investors can examine the company’s earnings outlook. This includes current consensus earnings expectations for upcoming quarters and how these expectations have changed recently. Empirical research has established a strong correlation between near-term stock movements and trends in earnings estimate revisions.
Currently, the estimate revisions trend for Casey’s is mixed. While the magnitude and direction of these revisions could shift following the recent earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. This ranking suggests that the shares are expected to perform in line with the market in the near future.
As the company moves forward, investors will be keenly watching how estimates for the coming quarters and the current fiscal year evolve. The current consensus EPS estimate stands at $4.43 on $4.11 billion in revenues for the upcoming quarter, and $14.06 on $15.46 billion in revenues for the current fiscal year.
It’s crucial to consider the broader industry outlook, as it can significantly influence the stock’s performance. The Retail – Convenience Stores industry, where Casey’s operates, is currently ranked within the top 40% of the 250+ Zacks industries. This ranking is based on the understanding that the top 50% of Zacks-ranked industries typically outperform the bottom 50% by a factor of more than 2 to 1.
In addition to Casey’s, another notable company in the Zacks Retail-Wholesale sector, Kroger (KR), is set to release its earnings results for the quarter ended July 2024 on September 12. Analysts are anticipating quarterly earnings of $0.91 per share for Kroger, representing a year-over-year change of -5.2%. The consensus EPS estimate for the quarter has remained unchanged over the past 30 days. Kroger’s revenues are projected to reach $34.09 billion, marking a 0.7% increase from the year-ago quarter.
