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CASY Stock Fell 4% after Fiscal 3Q17 Earnings Miss

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Market reaction to Casey’s fiscal 3Q17 earnings release

As Casey’s General Stores (CASY) failed to meet expectations with its fiscal 3Q17[1. quarter ended January 31, 2017] results on March 6, 2017, the company’s stock price fell 3.9% and closed at $109.78 on March 7. Year-to-date (or YTD), the company has lost 7.7% of its value and is trading 21% below its 52-week high price.

In comparison, convenience store peers CST Brands (CST) and Murphy USA are still in the green and have registered YTD gains of 0.4% and 7.2%, respectively. However, supermarket players Kroger (KR) and SuperValu (SVU) are down 16.5% and 28.5%, respectively, year-to-date through March 7, 2017.

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CASY announces dividends and share repurchase program

Casey’s General Stores (CASY) has paid regular dividends since 1991. Along with its fiscal 3Q17 earnings release, CASY announced a dividend of $0.24 per share, which is in line with the previous quarter. The dividend is payable on May 15, 2017.

The company also announced a share repurchase program of $300 million, which would be valid for the next two years.

A look at CASY’s dividend yield

Casey’s General Stores stock offers a one-year forward dividend yield of 0.8%, which is lower than the yields offered by dividend-paying retailers Walmart (2.7%) and Target (4.5%).

CASY has a dividend payout ratio of 19%. In comparison, Walmart and Target have payouts of more than 35%. CST Brands, however, has a dividend payout as low as 3%.

Investors looking for exposure to CASY can invest in the ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL), which has ~2% of its holdings invested in the company.

In the final part of this series, we’ll look at the latest Wall Street outlook on Casey’s General Stores.

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