Core Viewpoint - Analysts expect Casey's General Stores (CASY) to report quarterly earnings of $1.83 per share, reflecting a year-over-year decline of 21.5%, while revenues are projected to be $3.83 billion, an increase of 15.1% from the previous year [1]. Earnings Estimates - There have been no revisions in the consensus EPS estimate for the quarter over the last 30 days, indicating stability in analysts' forecasts [1][2]. Revenue Projections - Analysts forecast 'Net Sales- Fuel' at $2.36 billion, representing a year-over-year increase of 15.2% [4]. - 'Net Sales- Other' is expected to reach $79.98 million, indicating a growth of 27.7% year-over-year [4]. - 'Net Sales- Prepared Food & Dispensed Beverage' is projected at $399.94 million, reflecting a 14.5% increase from the prior year [4]. - 'Net Sales- Grocery & General Merchandise' is estimated to be $993.32 million, showing a 14.8% change from the previous year [5]. Store and Sales Metrics - The consensus estimate for 'Number of Stores (EOP)' is 2,902, up from 2,639 a year ago [5]. - Analysts predict 'Number of Fuel gallons sold' to be 810.30 million, compared to 689.25 million in the previous year [5]. - 'Same-store sales - Prepared Food & Dispensed Beverage - YoY change' is expected to be 4.7%, down from 7.5% a year ago [6]. - 'Number of Stores (BOP)' is projected to reach 2,685, up from 2,521 year-over-year [6]. Gross Profit Estimates - 'Gross Profit- Grocery & General Merchandise' is estimated at $341.58 million, compared to $293.18 million last year [7]. - 'Gross Profit- Prepared Food & Dispensed Beverage' is projected at $232.18 million, up from $208.33 million year-over-year [7]. - 'Gross Profit- Other' is expected to be $27.91 million, slightly up from $27.77 million in the same quarter last year [8]. - 'Gross Profit- Fuel' is estimated at $311.54 million, compared to $257.25 million a year ago [8]. Stock Performance - Over the past month, shares of Casey's have returned -5.7%, while the Zacks S&P 500 composite has seen a -4.1% change [8].

Core Insights - Insider buying activity is closely monitored by investors as it can provide insights into the long-term outlook of companies [1][10] FedEx (FDX) - FDX shares have gained approximately 12% over the past year, underperforming compared to the S&P 500 [3] - The CFO of FedEx recently purchased 1,000 shares for just under $275,000, increasing total shares owned by over 10% [4] Casey's General Stores (CASY) - CASY shares have performed strongly, gaining nearly 40% over the past year and outperforming the S&P 500 [5] - A director purchased 500 shares at a total cost of just under $200,000, increasing the total stake by more than 20% [8] Centene (CNC) - CNC shares have declined nearly 20% over the past year, significantly underperforming the S&P 500 [9] - Several insiders made purchases totaling approximately $1.6 million just before the Christmas holiday, although the near-term outlook remains bearish with analysts revising expectations downward [9]

Valuation and Stock Performance - Casey's General Stores, Inc. (CASY) is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 26.09X, which is a premium compared to the industry average of 22.68X and the S&P 500's average of 22.23X, indicating that the stock is overvalued [1] - Over the past month, shares of CASY have lost 5.1%, while the industry and S&P 500 declined by 5.3% and 0.8%, respectively [3] - Closing at $396.76, shares are trading below the 50-day simple moving average of $409.10, raising concerns about the stock's short-term outlook [4] Operating Expenses and Profitability Challenges - Casey's is facing rising operating expenses, which increased by 5.2% year-over-year to $609.7 million in the second quarter of fiscal 2025, primarily due to the operation of 93 additional stores [6] - The trend of rising operating expenses has been consistent over the past two quarters, with increases of 8.7% and 11% respectively, which could pressure profit margins [7] - The acquisition of Fikes is expected to significantly increase operating expenses, with one-time integration costs projected between $15-$20 million in the third quarter and total operating expenses expected to grow by 11-13% for fiscal 2025 [8] Sales Performance and Growth Initiatives - Casey's reported a 0.6% decline in same-store fuel gallons sold for the fiscal second quarter, with a contraction in fuel margin to 40.2 cents per gallon from 42.3 cents the previous year [10] - The prepared food and dispensed beverage segment, crucial for profitability, saw a gross margin decline of 30 basis points year-over-year to 58.7%, driven by rising input costs [11] - Inside sales grew by 9% year-over-year to $1.47 billion, supported by strong performance in prepared foods and beverages [17] Future Outlook and Strategic Plans - Casey's has reaffirmed its full-year guidance for fiscal 2025, expecting inside same-store sales growth of 3% to 5% and at least a 10% increase in EBITDA [18] - The company plans to open approximately 270 new stores during the fiscal year to drive continued revenue growth [18] - Casey's maintains a strong liquidity position with $1.25 billion as of October 31, 2024, and generated $160 million in free cash flow for the fiscal quarter, up from $145.6 million year-over-year [19]

Core Insights - Dividend growth stocks provide stable returns and portfolio growth through increasing annual distributions, which can be reinvested for compounded performance [1] - The stocks discussed are growth stocks with total returns projected in the high-double-digits for 2024, and significant growth over the past five and ten years [2] Group 1: Packaging Corporation of America (PKG) - PKG has experienced nearly 100% price appreciation over the last eighteen months, with a dividend yield of 2.11% and a P/E ratio of 27.63 [4] - The company is expected to see adjusted EPS growth of nearly 25% in 2024, with a payout ratio of only 55%, indicating strong dividend sustainability [5] - Analysts have increased their price targets for PKG by nearly 50% in the latter half of 2024, suggesting a positive revision trend [6] Group 2: Cintas (CTAS) - Cintas operates with a strong balance sheet and has a dividend yield of 0.74%, with a P/E ratio of 53.48, indicating high-quality operations [7] - The company is expected to sustain growth in the high single digits, supported by expanding market presence and share repurchases [8] Group 3: Casey's General Stores (CASY) - CASY has a dividend yield of 0.47% and a P/E ratio of 29.58, with plans to sustain margins despite headwinds in 2024 [12] - The company is acquiring Fikes Wholesale to enhance its regional presence, which will support future growth [12] - CASY has a low payout ratio of less than 15%, positioning it well to continue its history of dividend increases [13]

Store Operations - As of October 31, 2024, the total store count reached approximately 2,685, with an acquisition of 198 stores from Fikes bringing the total to about 2,900 stores[48][49]. - The company operates 178 EV charging stations at 41 stores across 13 states as part of its EV growth strategy[52]. Financial Performance - The company reported diluted earnings per share of $4.85 for Q2 fiscal 2025, an increase from $4.24 in the same quarter last year[56]. - Total revenue for the second quarter of fiscal 2025 decreased by $117,629 (2.9%) compared to the same period in fiscal 2024, totaling $3,946,771[56]. - Same-store sales for prepared food and dispensed beverages increased by 5.2%, while grocery and general merchandise sales rose by 3.6% during the quarter[53]. - Net income rose by $22,136 (13.9%) to $180,918, driven by higher profitability in-store and in fuel[58]. - Total revenue for the first six months of fiscal 2025 increased by $110,857 (1.4%) compared to the same period in fiscal 2024[60]. - Prepared food and dispensed beverage revenue rose by $67,662 (9.0%) due to a 4.7% increase in same-store sales and approximately 4.3% from store growth[60]. - Grocery and general merchandise revenue increased by $157,309 (8.0%) driven by a 5.5% increase from store growth and 2.5% from same-store sales[60]. - Net income increased by $33,097 (10.1%) to $361,116, attributed to higher profitability in stores and fuel[62]. - EBITDA for the first six months of fiscal 2025 increased by 11.5% to $694,662 compared to $622,757 in the prior year[63]. Operating Expenses - Operating expenses increased by $29,976 (5.2%) to $609,679, primarily due to operating 93 more stores than the previous year[56]. - Operating expenses increased by $78,595 (6.9%) primarily due to operating 93 more stores compared to the prior year[62]. Cash Flow and Debt - Cash provided by operating activities rose by $70,277 to $552,057 for the six months ended October 31, 2024[66]. - Cash used in investing activities decreased by $61,176, with expenditures of $257,567 for property and equipment and acquisitions[66]. - Cash provided by financing activities increased by $1,142,884, primarily due to proceeds from long-term debt of $1,100,000 for the Fikes acquisition[66]. - As of October 31, 2024, the company's total long-term debt amounted to $2,461,922,000 after accounting for current maturities and debt issuance costs[68]. - The company has a variable rate term loan facility with a balance of $231,250,000, which requires quarterly installments ending April 21, 2028[68]. - The company has issued various senior notes with interest rates ranging from 2.85% to 5.43%, with total amounts due reaching $1,537,000,000[68]. Market Risks and Hedging - An immediate 100-basis-point increase in interest rates would result in an approximate annualized impact of $10.6 million on interest expense[73]. - The company utilizes futures contracts to hedge against the volatility of fuel prices associated with non-store inventoried fuel[73]. - The company is exposed to market risks related to fuel price volatility, which could adversely affect its financial results[73]. - The company cautions that various risk factors, including food ingredient costs and supply chain disruptions, could materially impact its operations[70]. - The company emphasizes the importance of high-quality credit issuers to mitigate default risk in its investment portfolio[73]. - The company does not speculate in trading financial instruments and ensures all hedges are matched against recorded physical transactions[73]. Taxation - The effective tax rate increased to 24.5% in Q2 fiscal 2025, up from 23.6% in the same period last year[58]. Fuel Revenue - Retail fuel revenue decreased by $231,846 (8.8%) due to a 14.1% drop in average retail price per gallon, despite a 6.2% increase in gallons sold[56]. - Same-store fuel gallons sold experienced a 0.6% decrease during the quarter[53]. - Retail fuel revenue decreased by $103,537 (2.0%) as the average retail price per gallon fell by 8.6%, despite a 7.2% increase in gallons sold[60].

Loan Details - The Borrower has requested an Incremental Term A-1 Loan in an aggregate principal amount of $850,000,000[2] - The total Incremental Term A-1 Loan Commitment as of the First Amendment Effective Date is $850,000,000[14] - The Borrower shall repay the aggregate outstanding principal amount of the Incremental Term A-1 Loan in consecutive quarterly installments of $10,625,000 starting March 31, 2025[6] - The Incremental Term A-1 Loan shall be paid in full, together with accrued interest, on the Term Loan Maturity Date of October 30, 2029[15] - The proceeds of the Incremental Term A-1 Loan will be used to finance the acquisition of 100% of the Equity Interests of Fikes Wholesale, Inc. and Group Petroleum Services, Inc.[10] - The Incremental Term A-1 Loan will share ratably in all prepayments with the Initial Term Loan[9] - The Applicable Margin for the Incremental Term A-1 Loan will be based on Pricing Level II until the Calculation Date for the first full fiscal quarter ending after the First Amendment Effective Date[7] Borrowing Process - The Borrower must provide an irrevocable Notice of Borrowing prior to 11:00 a.m. on the First Amendment Effective Date[4] - The Borrower must provide a signed certificate confirming the First Amendment Acquisition will be consummated within three Business Days[30] - The Borrower is required to deliver a Beneficial Ownership Certification at least five Business Days prior to the First Amendment Effective Date[34] Compliance and Covenants - The Borrower must demonstrate compliance with financial covenants based on the most recently completed Test Period[24] - No Default or Event of Default shall exist on the First Amendment Effective Date[28] - The representations and warranties of the Loan Parties must be true and correct in all material respects on the First Amendment Effective Date[36] Legal and Administrative Provisions - The execution and delivery of the Amendment must be within the Borrower's corporate powers and duly authorized[38] - The Borrower confirms and ratifies its obligations under the Loan Documents, ensuring legal and binding commitments[40] - The Borrower acknowledges its payment and reimbursement obligations for reasonable expenses incurred by the Administrative Agent[41] - This Amendment is governed by the laws of the State of New York, ensuring compliance with applicable legal standards[41] - The Amendment may be executed in counterparts, allowing for flexibility in execution among parties[42] - Any provision deemed unenforceable in one jurisdiction will not affect the validity of the remaining provisions[43] - The Amendment is binding on successors and assigns, ensuring continuity of obligations[44] Fees and Payments - Each optional prepayment of the Term Loans must be at least $5,000,000 or any whole multiple of $500,000[18] - Facility fees for the Revolving Credit Lenders will accrue at a rate equal to the Applicable Margin on the average daily amount of the Revolving Credit Commitment[19] - The Facility Fees will be payable in arrears on the last Business Day of each calendar quarter starting June 30, 2023[20] Loan Arrangers - The Incremental Term A-1 Loan Arrangers include Wells Fargo Securities, LLC, CoBank, ACB, JPMorgan Chase Bank, N.A., and BMO Capital Markets Corp.[2]

Wall Street analysts forecast that Casey's General Stores (CASY) will report quarterly earnings of $4.24 per share in its upcoming release, pointing to no change from the year-ago quarter. It is anticipated that revenues will amount to $4.01 billion, exhibiting a decline of 1.4% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 4.3% to its current level. This demonstrates the covering analysts' collective reassessment of their init ...

The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Casey's General Stores (CASY) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.Casey's General Stores is a member of our Retail-Wholesale group, which includes 210 different companies and currently sits at #7 in the Zacks Sector Rank. ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Casey's General Stores (CASY) . This company, which is in the Zacks Retail - Convenience Stores industry, shows potential for another earnings beat.When looking at the last two reports, this convenience store chain has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 22.02%, on ave ...

Have you been paying attention to shares of Casey's General Stores (CASY) ? Shares have been on the move with the stock up 6.6% over the past month. The stock hit a new 52-week high of $401.17 in the previous session. Casey's General Stores has gained 45.8% since the start of the year compared to the 21.1% move for the Zacks Retail-Wholesale sector and the 45.8% return for the Zacks Retail - Convenience Stores industry. What's Driving the Outperformance? The stock has an impressive record of positive earnin ...