Casey's General Store (CASY 111.01, -10.24) has given up 8.5% after missing earnings expectations and issuing mixed guidance.
The convenience store/gas station operator reported below-consensus second quarter earnings of $1.28 per share on a 12.2% year-over-year increase in revenue to $2.15 billion, which was also shy of estimates.
Same-store Fuel sales increased 1.9%, which was on the high end of the company's guidance for growth between 1.0% and 2.0%. Total gallons sold increased 5.7% year-over-year to 561.7 million gallons.
Grocery and other merchandise same store sales increased 2.5%, ahead of guidance for growth of 2.0%. Average margin checked in at 32.0%, which was on the high end of the company's guidance range. The company noted that it has continued gaining market share in this category with total segment revenue increasing 5.0% year-over-year to $572.20 million. Same store sales growth during the quarter was a bit behind the company's year-to-date same store sales growth rate of 2.8%.
Prepared Food and Fountain same store sales grew 2.1%, which was well behind the company's expectations for growth between 4.0% and 6.0%. Average margin was reported at 61.3%, which was also below the company's guidance range (61.5% to 62.5%). Total Prepared Food and Fountain sales grew 5.5% to $262.00 million.
Looking ahead, Casey's lowered its full-year forecast for prepared food and fountain same-store sales growth to 2.0%-4.0% from the previous range of 4.0%-6.0%. The company reaffirmed expectations for 1.0%-2.0% growth in same-store fuel sales. Grocery and other same-store sales are expected to increase between 2.0% and 4.0%.
The company continues expecting to build or acquire between 90 and 120 locations before the fiscal year ends.