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On Tuesday, Casey’s General Stores (NASDAQ:CASY) received a reaffirmed Market Perform rating from Raymond (NSE:RYMD) James following the company’s release of its third quarter fiscal year 2025 results, which ended on January 31, 2025. The convenience store chain, currently valued at $14 billion in market capitalization, reported earnings per share (EPS) and earnings before interest, taxes, depreciation, and amortization (EBITDA) that exceeded both the analyst’s and the consensus expectations. This outperformance was largely attributed to operating expenses that were lower than anticipated. According to InvestingPro data, Casey’s maintains a strong financial health score of "GOOD" and has demonstrated consistent profitability with a 23.4% gross profit margin over the last twelve months.
The company’s management also revised its full-year 2025 EBITDA guidance, forecasting approximately 11% year-over-year growth compared to the previous guidance of at least 10% year-over-year growth. This new projection suggests that the consensus for the fourth-quarter EBITDA may need to be adjusted downwards slightly, although it remains within the previously provided guidance range. InvestingPro analysis indicates that Casey’s has maintained dividend payments for 36 consecutive years, with a recent dividend yield of 0.53% and impressive dividend growth of 16.3% in the last twelve months.
The analyst noted that the results were solid and indicated that further details would be sought during the company’s conference call, which is scheduled for tomorrow. This call is expected to provide additional insights into the quarter’s performance and any commentary regarding the month of February.
Casey’s General Stores operates a chain of convenience stores across the United States and is known for its selection of prepared foods, groceries, and gasoline. The company’s performance is often seen as a bellwether for consumer spending patterns, particularly in the Midwest where many of its stores are located.
Investors and analysts will be closely monitoring the upcoming conference call for any strategic updates or shifts in consumer trends that may impact Casey’s business outlook. The reaffirmation of the Market Perform rating by Raymond James suggests that the firm is taking a cautious but watchful stance on the stock, pending further information from the company’s management.
In other recent news, Casey’s General Stores reported third-quarter results that exceeded expectations. The company achieved earnings per share of $2.33, surpassing analyst estimates of $2.03. Revenue reached $3.9 billion, beating the consensus forecast of $3.76 billion. Inside same-store sales increased by 3.7% year-over-year, supported by strong performance in prepared food and dispensed beverages. Fuel same-store gallons sold rose by 1.8% compared to the previous year, with total fuel gallons sold surging 20.4% to 829.8 million gallons. This growth was partly attributed to the recent acquisition of Fikes and unit expansion. Casey’s has updated its fiscal 2025 outlook, now expecting EBITDA to increase by approximately 11%. The company continues to forecast 3-5% same-store inside sales growth and a range of -1% to +1% for same-store fuel gallon growth for the full year. As of January 31, 2025, Casey’s operated 2,893 stores, marking an increase of 235 stores from the prior year period.
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