Casey’s General Stores Inc (NASDAQ:CASY) stock fell 3.87% (As on June 8, 12:36:49 AM UTC-4, Source: Google Finance) after the company beats the earnings estimates of the fourth quarter of FY 22. Total inside sales were up 14% for the quarter and total inside gross profit was up 12%. Inside same-store sales were driven by strong sales in pizza slices and breakfast sandwiches, along with non-alcoholic and alcoholic beverages. Inside margin was down 50 basis points for the quarter primarily due to inflationary pressures in the prepared food and dispensed beverage category, partially offset by pricing actions and an increase in single-serve and smaller package sized non-alcoholic and alcoholic beverages in the grocery and general merchandise category. Same-store gallons sold were up 1.5% for the quarter, and up 8% on a two-year stacked basis. Fuel gross profit was up 27% due to an increase of 3.2 cents per gallon in fuel margin coupled with a 16% increase in total fuel gallons sold, despite a significant increase in fuel cost experienced at the end of the quarter. The Company sold $1.1 million in renewable fuel credits (RINs) in the fourth quarter, while no RINs were sold in the same period last year. At April 30, the Company had approximately $634 million in available liquidity, consisting of approximately $159 million in cash and cash equivalents on hand and $475 million in undrawn borrowing capacity on existing lines of credit. The Company prepaid variable rate debt by approximately $168 million in the quarter.
CASY in the fourth quarter of FY 22 has reported the adjusted earnings per share of $1.60, beating the analysts’ estimates for the adjusted earnings per share of $1.59. The company had reported the adjusted revenue growth of 45.4 percent to $3.46 billion in the fourth quarter of FY 22, which is inline with the analysts’ estimates for revenue of $3.46 billion.
Additionally, the company has increased the dividend by 9% to $0.38 per share, payable August 15, 2022, to shareholders of record on August 1, 2022. The company has $400 million remaining under its existing share repurchase authorization.
Casey’s expects FY23 same-store inside sales to increase in the range of 4% – 6%. It expects same-store fuel gallons to be flat – 2% higher. The Company expects to add approximately 80 stores in fiscal 2023, and expects to exceed the stated three year commitment of 345 units.