Casey’s General Stores Stock Rises After Q2 Earnings Beat, Price Target Hike: Retail Sentiment Brightens

Shares of convenience chain Casey’s General Stores were up over 1% on Tuesday morning after the company reported second-quarter earnings that beat earnings estimates, lifting rental sentiment.

Casey’s reported diluted earnings per share (EPS) of $4.85, up 14% from the same period a year ago and above the Wall Street estimates of $4.29. The company’s revenue stood at $3.95 billion, missing estimates of $4.03 billion.

Inside same-store sales increased 4% compared to the same period last year, with an inside margin of 42.2%.

The company also announced a quarterly dividend of $0.50 per share, payable in February to shareholders of record on February 3.

Net income was $181 million, up 14%, and earnings before interest, taxes, depreciation, and amortization (EBITDA) was $349 million, up 14%, from a year ago.

RBC Capital raised the company's price target to $428 from $403 and maintained a ‘Sector Perform’ rating on the stock, citing better-than-expected Q2 results, The Fly.com reported.

The brokerage raised its price target, citing “valuation premium, reflecting its attractive inside-store mix, unit growth cadence, geographic concentration, strong expense control, and the upside from its Fikes acquisition.”

Retail sentiment on the stock has improved to ‘bullish’ (60/100) from bearish (31/100) a month ago. While message volumes have risen to ‘extremely high’ from ‘high.’

"Casey's delivered a strong second quarter highlighted by robust inside gross profit growth,” Darren Rebelez, chair, president, and CEO, said in a statement, adding the company’s same-store sales were driven by the prepared food and dispensed beverage category, with hot sandwiches and cold dispensed beverage performing exceptionally well.

“Our fuel team continues to balance volume and margin as they achieved over 40 cents per gallon fuel margin while outpacing the relevant geographic market in same-store fuel gallons,” Rebelez added.

Casey’s also updated its 2025 outlook with EBITDA expected to increase at least 10%.

The company recently closed a previously announced acquisition of Fikes Wholesale, acquiring 198 CEFCO convenience stores, a deal that will impact its Q3 numbers.

Casey’s stock is up 51.7% year-to-date.

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