Casey’s Declines Most Since 2008 on Gasoline Margins
Casey’s General Stores Inc. (CASY) fell the most in more than three years after the operator of convenience stores in the U.S. Midwest reported fourth-quarter earnings that trailed analysts’ estimates, citing a drop in gasoline profits.
The shares tumbled 13 percent to $52.18 at the close in New York, for the largest daily decline since Dec. 4, 2008. Casey’s had the third-biggest drop in the Russell 2000 Index. (RTY) The Ankeny, Iowa-based company’s stock has advanced 1.3 percent this year.
Casey’s, which operates more than 1,600 locations in 11 states, said yesterday after the close of regular trading that a decline in its gasoline profit margin during the quarter ended April 30 reduced basic per-share earnings by about 12 cents. The quarterly earnings were 60 cents a share, compared to a 67-cent average of analyst estimates compiled by Bloomberg.
“The gas margin was down nearly 2 cents per gallon from the same period a year ago,” Chief Executive Officer Robert Myers said in a statement. The company “offset this decline with strong sales and margin gains inside our stores.”
Revenue for the quarter was $1.75 billion, a 13 percent increase from a year earlier.
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