Casey’s General Stores, Inc. (CASY – Free Report) is likely to register an increase in the top line when it reports third-quarter fiscal 2025 earnings results on March 11, after market close. The Zacks Consensus Estimate for revenues is pegged at $3,786 million, indicating a 13.7% increase compared with the same quarter last year.
Casey’s earnings per share is also expected to decline year over year. The Zacks Consensus Estimate for fiscal third-quarter earnings has remained unchanged over the past 30 days, now pinned at $1.83, implying a 21.5% decrease from the prior-year period.
This Ankeny, IA-based company delivered a trailing four-quarter earnings surprise of 16.1%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 14.4%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Casey’s General Stores, Inc. Price, Consensus and EPS Surprise
Casey’s General Stores, Inc. price-consensus-eps-surprise-chart | Casey’s General Stores, Inc. Quote
Things to Know Before CASY’s Q3 Earnings
Casey’s strong business model, robust omnichannel capabilities and expanding customer reach continue to reinforce its market position. By leveraging technological advancements, diversifying product offerings and executing strategic store expansions, the company remains well-equipped for sustained growth.
Casey’s is enhancing its food selection through innovative pricing and product optimization strategies. This approach has driven strong sales growth across business segments in the fiscal second quarter, showcasing the company’s ability to cater to consumer demand effectively. These strategic initiatives are expected to have positively impacted segment performance in the upcoming quarter.
For the fiscal third quarter, we anticipate a 14% increase in sales for the grocery and general merchandise category, while the prepared food and dispensed beverage segment is expected to have grown 14.5%. As a result, inside sales are expected to have risen 14.1%, with inside same-store sales growing 3.9%.
Casey’s fuel segment remains a critical revenue driver. The company has been optimizing fuel margins through supply-chain efficiencies and dynamic pricing strategies. We expect sales from the segment to have increased 14.8% for the quarter under review.
Casey’s strategic expansion is the acquisition of Fikes, the largest acquisition in its history. This move aligns with Casey’s three-year growth plan, significantly expanding its market presence. The acquisition is expected to have contributed more than $200 million in inside sales and approximately 200 million gallons of fuel during the second half of fiscal 2025.
However, in the short term, the integration of Fikes will introduce some financial pressures. Casey’s expects $15-$20 million in one-time integration costs, leading to temporary EBITDA dilution in the fiscal third quarter. As a result, total operating expenses are anticipated to have risen 20% in the quarter, primarily due to integration costs. While EBITDA contribution from Fikes will be modest in the fiscal third quarter, stronger benefits are expected in the later quarters as synergies are realized.
Earnings Whispers for CASY
Our proven model does not conclusively predict an earnings beat for Casey’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Casey’s currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three other companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this season:
Five Below, Inc. (FIVE – Free Report) has an Earnings ESP of +1.45% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
FIVE is likely to register top-line growth when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.4 billion, indicating 3.1% growth from the figure reported in the year-ago quarter.
The consensus estimate for Five Below’s fiscal fourth-quarter earnings is pegged at $3.35 per share, implying an 8.2% decline from the figure reported in the year-ago quarter. FIVE delivered an average earnings surprise of 39% in the trailing four quarters.
Dollar General Corporation (DG – Free Report) currently has an Earnings ESP of +1.08% and a Zacks Rank of 3. The company’s top line is anticipated to have increased year over year when it reports fourth-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $10.3 billion, which indicates a 4.1% increase from the figure reported in the year-ago quarter.
The company is expected to register a decline in the bottom line. The consensus estimate for Dollar General’s fiscal fourth-quarter earnings is pegged at $1.49 per share, down 18.6% from the year-ago quarter.
DICK’S Sporting Goods, Inc. (DKS – Free Report) currently has an Earnings ESP of +1.91% and a Zacks Rank of 2. The company’s top line is anticipated to have decreased year over year when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.8 billion, which indicates a 3% decrease from the figure reported in the year-ago quarter.
The company is expected to register a decline in the bottom line. The consensus estimate for DICK’S Sporting Goods’ fiscal fourth-quarter earnings is pegged at $3.49 per share, down 9.4% from the year-ago quarter. DKS delivered a trailing four-quarter earnings surprise of 11.4%, on average.
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