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Jan 31, 2023
Casey's Q3 2023 Earnings Report
Casey's delivered a stellar quarter with increased inside gross profit and efficient operating expense management.
Key Takeaways
Casey's General Stores reported a strong third quarter with diluted EPS up 56% to $2.67, benefiting from a one-time operating expense reduction. Inside same-store sales increased by 5.6%, driven by grocery and general merchandise, while same-store fuel gallons decreased slightly by 0.5%. The company is modifying its fiscal 2023 outlook, expecting same-store inside sales growth of approximately 6% to 7% and same-store fuel gallons to be down 1% to up 1%.
Diluted EPS increased by 56% to $2.67, including a $0.31 benefit from a one-time operating expense reduction.
Inside same-store sales grew by 5.6%, with a margin of 40.6%, and total inside gross profit increased by 11.6% to $450.6 million.
Same-store fuel gallons decreased by 0.5%, but fuel margin was 40.7 cents per gallon, leading to a 10.4% increase in total fuel gross profit to $262.6 million.
The company is modifying its fiscal 2023 outlook, projecting same-store inside sales growth of approximately 6% to 7% and same-store fuel gallons to be down 1% to up 1%.
Revenue by Segment
Forward Guidance
Casey's is modifying its fiscal 2023 outlook. The Company now expects same-store inside sales growth to be approximately 6% to 7%. The Company now expects same-store fuel gallons to be down 1% to up 1%.
Positive Outlook
- Same-store inside sales growth is expected to be approximately 6% to 7%.
- The Company expects to add approximately 80 stores in fiscal 2023, and expects to exceed our stated three year commitment of 345 units.
- Inside margin is expected to be approximately 40%.
- Interest expense is expected to be approximately $55 million.
- The tax rate is expected to be between approximately 24% and 25% for the year.
Challenges Ahead
- Same-store fuel gallons to be down 1% to up 1%.
- Total operating expense increase, excluding the one-time benefit received this quarter, is expected to be near the low end of the annual range of approximately 9% to 10%.
- Depreciation and amortization is expected to be approximately $320 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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