Casey’s General Stores Inc. 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. 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.