Casey's Posts Upbeat Q2 Earnings, But Sales Miss Views

reported better-than-expected earnings for its fiscal second quarter, but the company's sales missed analysts' estimates. The Ankeny, Iowa-based company reported a quarterly profit of $79 million, or $2 per share, versus a year-ago profit of $49.9 million, or $1.28 per share. Its revenue declined 10 percent to $1.92 billion. However, analysts were projecting earnings of $1.50 per share on revenue of $1.95 billion. Inside sales gained 11.6 percent for the quarter. Its gross margin expanded to 23 percent from 17.3 percent. Casey's fuel sales at stores open at least a year increased 3.3 percent in the quarter, while grocery sales climbed 7.5 percent. Same-store sales for prepared food and fountain climbed 9.4 percent for the quarter. "Casey's experienced significant sales growth in all major areas of our business, especially inside our stores," stated Chairman and CEO Robert J. Myers. "Second quarter inside sales were up 11.6% while total fuel gallons sold were up 7.7%. The positive sales performance, along with a strong prepared food and fuel margin, drove gross profit dollars up 19.3% for the quarter." Casey's affirmed its guidance for the year. Casey's shares rose 1.53 percent to $121.85 in the after-hours trading session.