UPDATE: Casey's Posts Upbeat Q3 Earnings, But Revenue Misses Views

Casey's General Stores Inc. CASY reported better-than-expected earnings for the third quarter, but the company's sales missed analysts' estimates. The Ankeny, Iowa-based company reported a quarterly profit of $39.3 million, or $1.01 per share, versus a year-ago profit of $12.7 million, or $0.33 per share. Its revenue dropped around 7% to $1.67 billion. However, analysts were expecting earnings of $0.82 per share on revenue of $1.71 billion. Its gross margin widened to 21% in the third quarter, compared to 15.5% in the year-earlier period. Grocery same-store sales climbed 7.7% in the quarter, while fuel gallons same-store sales surged 2.2%. Prepared food and fountain same-store sales jumped 14.1% in the quarter. "Casey's experienced significant inside sales growth throughout the third quarter," stated Chairman and CEO Robert J. Myers. "The steady decline in wholesale gasoline costs was favorable to fuel margins, and the low price of gasoline drove sales in all of our business categories." For the full year, the company expects grocery same-store sales to rise 5.3%, prepared food and other merchandise same-store sales growth of 9.5% and fuel gallons same-store sales growth of 1%. Casey's shares fell 0.80% to $90.00 in after-hours trading.