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Casey’s Didn’t Meet Analysts’ Top-Line Expectations

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Casey’s misses top-line expectations once again

Casey’s General Stores (CASY) reported it 1Q18 results on September 5, 2017. Its total sales rose 6.3% YoY (year-over-year) to $2.09 billion during the quarter.

The company missed Wall Street analysts’ expectations by $60 million, mainly due to a softer-than-expected performance from the Prepared Food and Fountain segment. It was the fifth consecutive sales miss for Casey’s.

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Expansion plan

Casey’s added five new stores under its umbrella during the quarter. There are another 47 new stores under construction. Management expects to exceed the target of building or acquiring 80–120 stores during the current fiscal year. As a result, the guidance for new store additions was revised to 90–120 stores for fiscal 2018.

Broader food retail segment

Big-box retailer Walmart (WMT), which reported its results on August 17, did better than Wall Street analysts’ expectations. Its total sales improved 2.1% YoY to $123.4 billion—$560 million more than the forecast.

Discount retailers Dollar Tree (DLTR) and Dollar General (DG) also performed better than analysts’ expectations. They reported their results later in August. While Dollar Tree reported a 5.7% increase in its top line to $5.3 billion, Dollar General’s sales rose 8.1% YoY to $5.6 billion.

Convenience store player Murphy USA (MUSA) missed consensus expectations this quarter. While its top line rose 6.3% YoY to $3.2 billion, the company fell short of analysts’ expectations by $60 million.

Investors looking for exposure to Casey’s can consider the ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL), which invests ~2.3% of its holdings in the company.

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