What led to Casey’s General Stores Inc (NASDAQ: CASY) stock crash

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Casey’s General Stores Inc (NASDAQ: CASY) stock fell over 7.8%  on 10th December, 2019 (As of 11:09 am GMT-5 ; Source: Google finance) after the company posted mixed results for second quarter of FY 20. For the second quarter, average fuel margin was 22.9 cents per gallon, while same-store gallons sold had fallen 1.8%. Second quarter gross profit dollars rose by about 19% to $140.8 million, and total gallons sold had risen 3.4% to 614.1 million gallons. CASY in the second quarter of FY 20 has reported the adjusted earnings per share of $2.21, while reported the adjusted revenue growth of 35.9 percent to $2.49 billion in the second quarter of FY 20, missing the analysts’ estimates for revenue by 2.29%.

The Company had made 12 acquisition stores under agreement to purchase and a new store pipeline of 97 sites, that also includes 31 under construction as of October 31, 2019.

For the quarter, Grocery and Other Merchandise’s same-store sales had increased 3.2% with average margin of 33.3%. Prepared Food and Fountain’s same-store sales for the third quarter were up 1.9% with the average margin of 60.9%

For the second quarter, total grocery and other merchandise revenue rose 6.8% to $660.6 million, and gross profit dollars grew nearly 10% to $220.1 million. Total prepared food and fountain revenue grew 5.2% to $297.8 million in the second quarter & its gross profit dollars grew to $181.5 million. For the second quarter, the total operating expenses rose by 8.5% to $373.4 million mainly due to operation of 84 more stores than the same quarter in the prior year.

Additionally, the company has declared a quarterly dividend of $0.32 per share, which is payable February 17, 2020 to shareholders of record on February 3, 2020. The Company has $300 million remaining on its share purchase authorization from March 2018.

For fiscal 2020, the company expects same store sales of Grocery and Other Merchandise to be in the range of 2.5 – 4.0%,  same store sales of Prepared Food & Fountain is expected to be in the range of 1.5 – 4.0% , Operating Expenses is expected to be in the range 7-9% & Depreciation and Amortization is expected to be in the range 6- 8%

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