Casey’s Q3 profit beats Street; plans 37 new stores, new DC

Ankeny, Iowa – Casey’s General Stores Inc. beat Wall Street estimates with net income of $39.2 million in the third quarter of fiscal 2014, more than triple $12.65 million earned in the year-ago period. Steady decline in wholesale fuel costs and rising inside sales helped Casey’s achieve impressive profit growth.



Casey’s currently has 26 new and 11 replacement stores under construction. The retailer’s annual goal is to build or acquire 72 to 108 stores and replace 25 existing stores.



Profit growth occurred even as Casey’s total revenue missed Wall Street expectations by falling 7% to $1.67 billion from $1.79 billion. Same-store sales grew 14.1%.



“Casey’s experienced significant inside sales growth throughout the third quarter,” said chairman and CEO Robert J. Myers. “The steady decline in wholesale gasoline costs was favorable to fuel margins, and the low price of gasoline drove sales in all of our business categories.”



As of the end of the third fiscal quarter, the company opened 33 new stores and acquired 32 stores. Casey’s also completed 25 replacements. In January, the company completed the expansion of the distribution center in Ankeny, Iowa, and is expecting to complete the construction of a second distribution center in Terre Haute, Indiana in February 2016.