Casey's General Stores Inc (NASDAQ:CASY) reported better-than-expected results for its second quarter and raised its quarterly dividend from $0.32 to $0.34 per share.
The company revealed diluted earnings per share of $3.00 compared to $2.21 for the same period a year ago, an increase of 36%.
Fuel gross profit increased 45% with a fuel margin of 35.3 cents per gallon. Same-store gallons sold decreased 8.6% compared to prior year but improved sequentially from first quarter.
Inside same-store sales increased 3.5% with a margin of 41.0%, inside gross profit increased 2.8%.
Digital sales increased 127% compared to prior year. Casey’s Rewards recently exceeded 3 million members.
The Board of Directors increased the dividend to $0.34 per share, an increase of 6%.
Buchanan Energy acquisition expected to close in December.
CEO Darren Rebelez said, "Casey’s had a remarkable second quarter and is well on our way to executing our long-term strategic plan. The Company delivered well-balanced financial results, with contributions from both ongoing strong fuel profitability and inside sales volume and profit improvements.
"Casey’s also recently announced an agreement for the largest acquisition in the Company’s history, the 94-store Bucky’s chain located primarily in Illinois and Nebraska. Finally, the Board's decision to raise the dividend is a sign of continuing confidence in the Company’s ability to achieve strong financial results and maintain our already excellent financial flexibility in both the short and long term."
CASY shares dropped $7.16, or 3.8%, to $180.66.
