Casey's General Stores Inc (NASDAQ:CASY) reported better-than-expected profit for its third quarter, while sales missed estimates.
The company, based in Ankeny, Iowa, told investors Monday diluted earnings per share proved to be $0.91 for the third quarter of fiscal year 2020, compared to $1.13 per share for the same quarter a year ago. An unfavorable pricing environment compared to the same period a year ago led to lower growth in fuel gross profit dollars.
Said CEO Darren Rebelez, "We are optimistic about the January launch of the Casey's Rewards program. With strong initial membership growth, we look forward to further developing the connection with our guests through this platform. ]
"We are excited to begin executing on the strategic plan we unveiled in January, which we believe will continue to generate shareholder value," stated Rebelez.
For the quarter, average fuel margin was 21.7 cents per gallon, while same-store gallons sold were down 2.0%. Third quarter gross profit dollars increased 1.4% to $124.3 million, and total gallons sold were up 3.3% to 572.7 million gallons. For the quarter, same-store sales were up 3.5% with average margin of 32.9%
For the third quarter, total operating expenses increased 10.5% to $377.3 million. Increases in credit card fees and the timing of incentive compensation costs drove 1.9% of the quarterly increase. Year to date, operating expenses were up 8.2%.
The increase in total operating expenses for third quarter and year-to-date was primarily attributable to operating 70 more stores than the same quarter in the prior year, and increases in technology costs.
CASY opened Tuesday trading up $1.04 to $173.04
