Casey's General Stores Inc. (CASY, Financial) came out with its fiscal first quarter 2021 financial results on Sept. 8 after the market closed. The company's earnings edged past Wall Street's projections, but revenue fell short.
By the numbers
The Ankeny, lowa-based company reported quarterly earnings per share of $3.24, which was higher than analyst forecasts of $2. The company's quarterly revenue came in at $2.11 billion, which was down 19.87% on a year-over-year basis. Analysts had projected revenue of $2.13 billion.
The company's operating expenses surged during the quarter due to new store openings as well as coronavirus-related expenses of $15 million. This was partly negated by a reduction in store hours and credit card fees.
The company's President and CEO Darren Rebelez had the following to say:
"Throughout the first quarter, Casey's demonstrated the ability to both safely serve our communities and guests through a constantly changing environment and deliver strong results. Sales volumes improved this quarter, combined with solid fuel margin execution and disciplined operating expense control, resulting in 40% growth in diluted earnings per share. Casey's continues to execute on our strategic plan, including investment in the guest experience with new digital capabilities to engage our guests today, and down the road."
The store count at the end of the quarter was a total of 2,214. The company has nine new stores under construction.
The company is authorized to buy back shares worth $300 million under the stock buyback program. However, the company did not buy back shares during the quarter.
Sector growth
Sales in the fuel category amounted to $1.09 billion in the first quarter, down from $1.6 billion reported last year. Likewise, same-store sales plunged 14.6% from the year-ago quarter. The segment's average margin was 19.3%.
In the categories of grocery and merchandise, sales amounted to $731.9 million in the reported quarter. That compares with $687.9 million reported a year earlier. Same-store sales were up 3.6%. The company had an average margin of 32.2%.
In the prepared food and fountain category, total sales for the quarter came in at $270.8 million. This is down from $295.9 million reported in the same quarter last year. Same-store sales plummeted 9.8%. The segment's average margin stood at 59.7%.
Financials and dividend
For the quarter ended July 31, the convenience store chain had cash on hand of roughly $247 million. In addition, the company had $325 million in additional borrowing capacity under the existing lines of credit.
The Board of Directors of the company declared a quarterly dividend of 32 cents per share, which would be payable to the shareholders on Nov. 16.
Guidance
The company did not provide any financial forecast.
Disclosure: I do not hold any positions in the stocks mentioned.
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