Casey's Q3 net income surges, partly on strong grocery sales

Overview

• Convenience store chain's Q3 net income up 49.3% yr/yr, driven by strong sales and margins

• Casey’s General Stores diluted EPS for Q3 rose 49.8% yr/yr

• Company repurchased $76 mln in shares during Q3

Outlook

• Caseys expects fiscal 2026 EBITDA to increase 18% to 20%

• Company forecasts inside same-store sales growth of 3.5% to 4.5%

Result Drivers

• INSIDE SALES GROWTH - Inside same-store sales increased 4.0%, driven by strong performance in grocery and general merchandise, and prepared food and beverages

• FUEL MARGIN EXPANSION - Fuel gross profit rose 15.3% due to increased gallons sold and higher fuel margins

• REWARDS PROGRAM GROWTH - Casey's Rewards program surpassed 10 million members, contributing to customer engagement and sales

Company press release: ID:nBwbp9rd3a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food retail & distribution peer group is "buy"

• Wall Street's median 12-month price target for Caseys General Stores Inc is $700.00, about 5.3% above its March 6 closing price of $664.60

• The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 33 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.