Shares of convenience store operator Casey’s General (NASDAQ:CASY) jumped 3.2% in Monday’s extended trading hours after beating earnings estimates. Casey’s first quarter Fiscal 2024 diluted earnings stood at $4.52 per share. The Q1 FY24 earnings grew 11% year-over-year and came in much higher than the consensus of $3.36 per share.
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However, revenue of $3.87 billion fell 13% year-over-year and also missed the analysts’ consensus estimate of $3.89 billion. Persistent inflationary pressure has impacted consumer’s purchasing power, thus weighing on the retailer’s sales. In the prior-year period, Casey’s reported diluted earnings of $4.09 per share on revenues of $4.45 billion.
The American retailer of groceries, gasoline, and fresh food items reported inside same-store sales growth of 5.4% compared to Q1FY23. Meanwhile, same-store fuel gallons rose marginally by 0.4% in the same period. The retailer attributed the demand momentum to the “normalized macro operating environment.”
Based on the same, the company expects to add a minimum of 150 stores in Fiscal 2024. Further, Casey’s reiterated its guidance for FY24. Inside same-store sales are expected to increase by 3% to 5%, and same-store fuel gallons sold are pegged to grow by +/-1%.
Is Casey’s a Good Stock to Buy?
Ahead of Casey’s Q1 print, Wells Fargo analyst Anthony Bonadio lifted the price target on CASY stock to $260 (8.6% upside) from $250 while maintaining a Buy rating.
Moreover, following the results, Goldman Sachs analyst Bonnie Herzog reiterated a price target of $230 (3.9% downside) on CASY, along with a Buy rating. Encouraged by the surprisingly strong quarterly performance, Herzog expects CASY stock to outperform the market on September 12.
Overall, with six Buys versus three Hold ratings, Casey’s General stock has a Moderate Buy consensus rating. On TipRanks, the average Casey’s General price target of $267.88 implies 11.9% upside potential from current levels. Meanwhile, year-to-date, CASY stock has gained 8.9%.
