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Casey’s Top Line before Its 2Q18 Results

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Casey’s sales will expand in 2Q18

As we discussed, Casey’s General Stores (CASY) will be reporting its 2Q18 results on December 12, 2017. Its top line is expected to grow 13.5% YoY (year-over-year) to $2.18 billion.

The current quarter would mark the fourth consecutive quarterly growth in Casey’s top line if the results are near the expectations. Volatility in fuel prices caused Casey’s sales to fall for several quarters. While the fuel prices are boosting the company’s total sales, a weaker-than-expected performance by Casey’s Prepared Food and Fountain and Grocery and Merchandise segments caused it to miss top-line expectations. Casey’s has fallen short of Wall Street’s projections for five consecutive quarters.

Other retailers

Walmart (WMT), which reported its results on November 16, beat Wall Street analysts’ expectations. Its total sales rose 4.2% YoY to $123.2 billion—$2.2 billion more than the forecast.

Kroger (KR) also beat analysts’ expectations. Its total sales rose 4.5% YoY to $27.5 billion. Kroger reported an increase in its traffic and basket size.

Dollar Tree (DLTR) and Dollar General (DG) also performed better than analysts’ expectations. While Dollar Tree reported a 6.4% increase in its top line to $5.32 billion, Dollar General’s sales rose 11% YoY to $5.9 billion.

Murphy USA (MUSA) missed analysts’ expectations this quarter. The company’s top line rose 6.6% YoY to $3.2 billion. It was $180 million short of analysts’ projections.

Investors looking to invest in Casey’s through ETFs can consider the First Trust Nasdaq Retail ETF (FTXD). Casey’s has a weight of ~1.4% in FTXD

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