Caseys General Stores Inc (NASDAQ:CASY) stock fell 0.64% (As on March 12, 12:15:32 AM UTC-4, Source: Google Finance) after the company posted mixed result for the third quarter of FY 24. The company has reported a 13% decrease in net income for the third quarter of the fiscal year 2024 to $86.93m, down from $100.11m in the same period of the previous year. The retailer’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached $217.61m in Q3 FY24, marking a 2% decline from $221.72m in Q3 FY23. This drop in EBITDA and diluted EPS can be partly attributed to a one-time operating expense reduction of $15m, or $0.31 per share, due to the resolution of a legal matter in the previous year. Despite the decrease in net income and EBITDA, Casey’s inside same-store sales saw a 4.1% increase compared to the previous year, and a 9.9% rise on a two-year stack basis, with an inside margin of 41.3%. Total inside gross profit rose by 11.3% to $501.5m compared to the previous year. Casey’s ended the quarter with strong liquidity, with approximately $1.1 billion available, including cash on hand and borrowing capacity. The company also continued its shareholder return programs, repurchasing $30 million of shares and declaring a quarterly dividend of $0.43 per share.

CASY in the third quarter of FY 24 has reported the adjusted earnings per share of $2.33, beating the analysts’ estimates for the adjusted earnings per share of $2.13. The company had reported the adjusted revenue of $3.33 billion in the third quarter of FY 24, missing the analysts’ estimates for revenue of $3.53 billion. Operating expenses saw a significant increase, partly due to the expansion of the store network. The company’s focus on efficiency is evident in the reduction of same-store labor hours, which helped mitigate the impact of rising labor rates on overall expenses.

Looking ahead, Casey’s reaffirmed its fiscal 2024 outlook, expecting same-store inside sales to grow between 3.5% to 5% and inside margin to improve to approximately 40% to 41%. The company anticipates same-store fuel gallons sold to range from a 1% decrease to a 1% increase. Operating expenses are projected to rise by 6% to 8%, with same-store operating expenses, excluding credit card fees, expected to increase by about 3%. EBITDA growth is forecasted to align with the strategic plan’s goal of 8% to 10%, and the company plans to add at least 150 stores during the fiscal year.