Casey’s General Stores (CASY) has reported better-than-expected results for the first quarter of Fiscal Year 2022 on the back of robust top-line growth. Casey’s General engages in the management and operation of convenience stores and gasoline stations.
Revenues jumped 51.2% year-over-year to $3.18 billion and surpassed analysts’ expectations of $3.02 billion. The upside can be attributed to an 81% rise in revenues from fuel units.
Meanwhile, the reported EPS of $3.19 beat the Street’s estimates of $2.96. The company had posted EPS of $3.24 in the same quarter last year. (See Casey’s General stock charts on TipRanks)
The President and CEO of Casey’s General Stores, Darren Rebelez, said, “Our balance sheet remains strong, and we are confident in our ability to achieve the previously stated fiscal 2022 outlook.”
The company has reiterated its outlook for Fiscal Year 2022. It expects same-store fuel and inside sales to increase by mid-single-digit percentages. Notably, the company seeks to add $500 million in property and equipment during the year, including acquisition remodels.
Following the earnings release, Berenberg Bank analyst Brian McNamara maintained a Buy rating on Casey’s General with a price target of $259 (27.8% upside potential from current levels).
In the absence of any information about rewards programs or digital metrics in Q1, McNamara is of the opinion that Casey’s General might have decelerated recruitment and digital trends materially during the quarter.
The stock has a Moderate Buy consensus rating based on 5 Buys, 4 Holds, and 1 Sell. The average Casey’s General price target of $225.56 implies 11.3% upside potential from current levels. Shares have gained 16.4% over the past year.
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