Market Overview

Casey's General In-Store Performance Sinks Q2 Results

Casey's General In-Store Performance Sinks Q2 Results
Related CASY
Casey's General Stores Analysts Talk Free Cash Flow, Acquisition Potential After Q2 Beat
48 Biggest Movers From Yesterday
Building A Bulletproof Portfolio Around Microsoft (Seeking Alpha)

Casey's General Stores Inc (NASDAQ: CASY) reported second quarter earnings Monday, including EPS, EBITDA and revenue misses. 

The Analyst

Jefferies' Christopher Mandeville maintains a Buy rating on Casey's stock with an unchanged $134 price target.

The Thesis

Casey's earnings report had some positive attributes, including "solid" fuel results and ongoing restraint in operating expenditures, Mandeville said in a 

Tuesday note. (See Mandeville's track record here.) 

But these positives were not strong enough to offset weak in-store performance, especially as the prepared food comps and margins "struggled mightily" and may have even gone negative in October, which would mark the first such incidence since January and February of 2010, the analyst said. 

Management also revised its prep food comp guidance range lower for the full year, but additional information from the company would be needed to "better understand what is going on," Mandeville said. One possible explanation for the weakness could be unfavorable cheese prices, and if this is the case, the company could see some relief due to cheese prices falling "sharply" over the past few weeks, the analyst said. 

On the positive front, the company "opportunistically" bought back $55 million worth of its stock at around $108 per share, which leaves another $117 million remaining, Mandeville said. 

Price Action

Shares of Casey's were trading lower by more than 8 percent Tuesday afternoon at $111.37. 

Related Link:

Mid-Day Market Update: Dow Rises Over 100 Points; Oasis Petroleum Shares Plummet

Latest Ratings for CASY

Dec 2018BarclaysMaintainsEqual-WeightEqual-Weight
Dec 2018Wells FargoMaintainsMarket PerformMarket Perform
Dec 2018Sidoti & Co.MaintainsNeutralNeutral

View More Analyst Ratings for CASY
View the Latest Analyst Ratings

Posted-In: Cheese Prices Christopher Mandeville Commodity Prices convenience storesAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga


Related Articles (CASY)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Short Seller Claims 'If You Want Something Bitcoin-Related, Digital Power Isn't It'

Checking In On Instacart, The Uber For Groceries