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Gas station and convenience store operator Casey's General (CASY) continued its impressive streak of crushing EPS expectations in 3Q25, bolstered by higher inside and fuel gross profits. CASY has now cruised past EPS estimates in each of the past seven quarters, but it also topped revenue expectations in Q3 -- a feat that's considerably rarer for CASY. In fact, the company had missed top-line expectations in three of the past four quarters heading into last night's Q3 print. This unpredictability and volatility are mainly due to fluctuations in fuel prices and the corresponding movements in fuel margins.

• Economic growth concerns tied to tariffs have weighed on shares of CASY, which were down by about 15% since mid-February prior to today's gains. A slowing economy would pressure fuel demand as people travel and drive less, while customers also cut back on discretionary spending, impacting sales of non-essential items like snacks and prepared foods. CASY's upside results and slightly improved FY25 EBITDA guidance, which now calls for growth of approximately 11% compared to its prior forecast of 10%, are easing those macro-related worries.
• Business was solid on the fuel side of the business. Same-store fuel gallons increased by 1.8% and total fuel gross profit increased by over 17% to $302.1 mln. While retail fuel prices edged lower during the quarter, fuel margin per gallon remained stable on a yr/yr basis at $0.364 per gallon. The primary growth driver, though, is tied to CASY's acquisition of Fikes Wholesale last November. With that $1.145 bln acquisition, CASY added 198 more stores across Texas, Alabama, Florida, and Mississippi, expanding its total footprint to nearly 2,900 stores.
• Turning to the convenience store business, CASY generated healthy inside same-store sales of +3.7%, reflecting its brand power and competitive advantages for its prepared food offerings, such as made-from-scratch pizzas and breakfast menu items. In addition to strength in prepared food, the company saw notable strength in dispensed beverage categories.
• If there is a blemish, it's that CASY once again chose to keep its FY25 guidance for same-store inside sales and inside margin the same, despite the better-than-expected Q3 performance, Specifically, the company still expects to generate same-store inside sales growth of 3-5% with inside margin comparable to the prior year's 41-42% level.

CASY delivered solid Q3 results with EPS of $2.33 matching the prior year's figure, highlighted by a 17% jump in revenue that was driven by a combination of healthy same-store inside sales growth and the impact of the Fikes Wholesale acquisition. Risks do remain, though, especially around softening travel demand, which was on display yesterday when the major airlines lowered their Q1 outlooks.