4Q17 Earnings Preview: What to Expect from Casey’s

Series snapshot

Iowa-based Casey’s General Stores (CASY) is slated to report its fourth-quarter 2017 and fiscal 2017 results on Tuesday, June 6, 2017.

Wall Street has predicted a 28.0% YoY (year-over-year) fall in the retailer’s earnings to $0.86 per share. Total sales for 4Q17 are projected to rise 18.8% YoY to $1.9 billion. The company fell short of Wall Street’s earnings and revenue estimates in the three previous quarters of the current fiscal year.

4Q17 Earnings Preview: What to Expect from Casey’s

About Casey’s

Casey’s General Stores and its subsidiaries operate 1,950 convenience stores in the United States. The company sells fuel and a wide range of grocery items and prepared foods in 15 Midwestern states.

Casey’s makes up 1.0% of the portfolio holdings of the SPDR S&P Retail ETF (XRT).

Valuations

Casey’s has touched its 52-week high and is currently trading at a one-year forward PE (price-to-earnings) ratio of 24.7x. That compares to its three-year average PE ratio of 21.0x.

The company continues to be cheaper than CST Brands (CST), which is valued at 29.0x. Murphy USA (MUSA), however, trades at a discount and is valued at 16.6x for the next 12 months of earnings.

What’s this series all about?

This series is a preview of Casey’s 4Q17 results. We’ll look at the company’s year-to-date financial performance, its key revenue drivers, and its stock market performance and current valuation. We’ll also see what Wall Street analysts are recommending for the company.