Casey's General Stores Inc (NASDAQ:CASY) reported weaker-than-expected earnings for its fourth quarter, while sales exceeded views.
The company, based in Ankeny, Iowa, revealed diluted earnings per share of $1.67 for the fourth quarter of its fiscal year ended April 30, 2020, compared to $0.68 for the same period a year ago. Diluted earnings per share was $7.10 for the year, compared to $5.51 last year.
For the fourth quarter, same-store sales were down 2.0% with an average margin of 30.4%. Same-store sales for the fiscal year were up 1.9% with an average margin of 32.0%.
Also during the quarter, operating expenses were up 6.2% to $367.5 million.
Fourth-quarter results were positively impacted by wage expense reductions related to a reduction in hours at the stores and lower credit card fees, offset by higher hourly wage rates and increased costs of cleaning and other pandemic-related supplies.
According to CEO Darren Rebelez, "The COVID-19 pandemic has created unprecedented challenges globally. I am exceptionally proud of our team members, who have risen to the challenge to safely serve our guests throughout this period.
"While it is difficult to predict the future impact of this crisis, we are confident that our adaptive business model, the agility of our team members, and our financial strength provides us the resiliency to operate in the current environment."
Shares in CASY drooped $4.84, or 2.9%, soon after Tuesday’s opening bell, to $164.67.
