Profit jumps 22 percent at Casey's during 2Q

AP News
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Posted: Dec 07, 2009 5:41 PM

Casey's General Stores Inc. on Monday said its fiscal second-quarter profit jumped more than 22 percent due to stronger profit margins on gasoline, food and other items in its convenience stores.

The company reported that it earned $33.6 million, or 66 cents per share, for the quarter ended Oct. 31. That's up from $27.3 million, or 54 cents per share, earned in the same quarter last year. Revenue fell 17 percent to $1.15 billion.

Analysts expected the company would earn 60 cents per share on revenue of $1.2 billion, according to a survey by Thomson Reuters.

The company said bad weather and consumers' continued tendency to trade down to lower-priced items hurt sales. But drivers such as continued high prices at the pump, lower food ingredient costs and increased sales all helped bump up its profitability for the quarter.

The company said it plans to increase its total number of stores by 4 percent in the 2010 fiscal year.

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Casey's General Stores operates roughly 1,500 convenience stores throughout the Midwest under its banner as well as HandiMart and Just Diesel names.

Shares of Casey's rose 33 cents to close at $31.10. But investors sent shares down $1.20, or nearly 4 percent, to $29.90 in after-hours trading.