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Casey’s Earnings Expected to Fall Further in 4Q17

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Jun. 1 2017, Updated 7:38 a.m. ET

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.

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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.

Grocery players such as Kroger (KR) and Whole Foods Market (WMT) are expected to report mid-single-digit rises, while big box retailer Walmart (WMT) is likely to report a modest rise of 0.10%.

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.

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