2 Mar

Inside Casey’s 3Q17 Earnings Expectations

WRITTEN BY Sonya Bells

Snapshot

Iowa-based Casey’s General Stores (CASY) is slated to report results for fiscal 3Q17 after the market closes on Tuesday, March 7, 2017.

In fiscal 2Q17, the company fell short of its Wall Street earnings and revenue estimates. Its adjusted earnings per share stood at $1.44, missing the consensus by $0.15.

Inside Casey’s 3Q17 Earnings Expectations

The company missed estimates for both revenue and earnings estimates in fiscal 1Q17.

For fiscal 3Q17, the Wall Street is predicting a 4% decline in the company’s earnings to $0.93 per share. Its top line, however, is expected to grow 15.5% YoY (year-over-year) to $1.8 billion.

About Casey’s

Casey’s (CASY) and its subsidiaries operate 1,908 convenience stores in the US. The company sells fuel, a wide range of grocery items, and prepared foods in 14 Midwestern US states, with a strong presence in Iowa (505 stores), Missouri (326 stores), and Illinois (422 stores).

Notably, Casey’s is included in portfolio holdings of The SPDR S&P Retail ETF (XRT) and has a weight-age of 1.3%.

Valuations

Casey’s is currently trading at a one-year forward PE (price-to-earnings) ratio of 20x, which is close to the lower end of its 52-week PE range of 18x–23.3x.

The company is cheaper than CST Brands (CST), which is valued at 28x. Murphy USA (MUSA), however, continued to trade at a discount to Casey’s. The company is valued at 14x its next 12-month earnings.

What’s this series about?

This series offers a preview of Casey’s 3Q17 results. In the remaining four parts, we’ll discuss the company’s year-to-date financial performance, discuss the key revenue drivers, talk about the Street’s view of Casey’s, evaluate its stock market performance, and examine current valuation.

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