Casey’s General Stores posted a quarterly profit that exceeded estimations, helped by higher margins at its prepared foods and grocery businesses, and sending its shares up about 5% in extended trading, Reuters reported.
Casey’s net income fell slightly to $39 million, or $1.01 per share, from $39.4 million, or $1.03 cents per share, a year earlier.
Casey’s noted revenue fell marginally to $1.87 billion. Analysts on average had expected earnings of 95 cents per share on revenue of $1.93 billion, according to Thomson Reuters I/B/E/S.
Margins at its grocery and merchandise segment rose to 33.4% from 32.5% while margins at its prepared food and fountain business rose to 63.5% from 61.2%.
Shares of the Ankeny, Iowa-based company, which have grown more than 20% over the past one year, rose to $60 after closing at $55.66 on Monday on the Nasdaq, Reuters noted.
This year Casey’s is focused on an extensive remodel program, including converting some stores into 24-hour locations, and growing its pizza delivery offering. Convenience Store Decisions has recognized Casey’s General Stores as a “Chain To Watch” in 2013. For more information on Casey’s initiatives and growth, check out the profile story on p. 28 of our September issue.