Casey’s earnings could fall 28% in 4Q17
As we’ve already seen, Casey’s General Stores (CASY) will report its fiscal 4Q17 results on June 6, 2017. Year-to-date, the company has had an 18.0% fall in adjusted EPS (earnings per share) to $3.72. It missed Wall Street’s expectations in all three quarters of 2017. The earnings miss was primarily a result of the weaker-than-expected performances of the prepared food and fountain category and the grocery and merchandise category.
For the fourth quarter, Wall Street has predicted a fall of 28.0% in Casey’s quarterly earnings to $0.86 per share. For fiscal 2017, that would add up to a 20.0% fall in earnings to $4.58 per share.
However, Wall Street expects an improvement in fiscal 2018 EPS of 7.6% to $4.93 per share.
Comparing Casey’s earnings expectations with peers
Casey’s EPS is projected to fall 4.5% over the next 12 months. Competitor CST Brands (CST) is likely to witness an even larger fall of 58.0% during the year. However, Murphy USA (MUSA) is expecting a 22.0% rise in EPS.
Investors looking for exposure to Casey’s can invest in the ProShares S&P MidCap 400 Dividend Aristocrats (REGL), which has about 2.2% of its holdings invested in the company.
In the next part, let’s look at Casey’s stock market performance and dividend policy.