Casey’s General Stores, Inc. | $CASY Stock | Shares Fall as Company Reports Disappointing Earnings


Casey’s General Stores, Inc.  (NASDAQ :CASY)


Casey’s General Stores, Inc. (CASY), a national company that operates convenience stores yesterday  reported their fourth quarter fiscal 2017 financial results. Casey’s reported a fourth quarter net income of $30.1 million.

Casey’s reported fourth quarter earnings of $0.76 per share which fell short of analyst expectations of  $0.89 per share. Casey’s reported fourth quarter revenues of $1.85 billion which fell short of analyst expectations of $1.87 billion.


Casey’s General Stores, Inc. CEO’s  Comments

“Despite a challenging operating environment, fiscal 2017 marked the 16th consecutive year of positive same-store sales growth in both the grocery and other merchandise and prepared food and fountain categories,” said Terry Handley, President and CEO. “We also recently opened our first store in the state of Ohio, and now have 116 sites under agreement for new store construction. We are optimistic about our growth opportunities.”  Business Wire


CASY Technical Analysis

Casey's General Stores

CASY opened trading yesterday at $116.80 which was up from the previous day’s trading close of $116.37. CASY closed trading yesterday at $116.50 and crashed down after market to $112.00, equivalent to a 4% decrease from the closing price. Taking a look at the daily chart we can see the last time CASY traded below these levels we have to go back to May 3rd when it traded at $110.49.

Taking a closer look at the daily chart we can see that before the spike down CASY had  been in an overall upward trend dating back to March 9th when it traded at $108.02. CASY has a float of 38.78 million shares and traded 1.60 times the normal daily trading volume on Monday.

For trading purposes, I would like to see CASY open trading on Tuesday below $113.50 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.50 from my entry position fearing anything more than that and the stock would start to fill in the gap down.


Company Profile

Casey’s General Stores, Inc., incorporated on December 13, 1967, and its subsidiaries, operate convenience stores under the name Casey’s General Store in approximately 10 Midwestern states, in Iowa, Missouri, and Illinois. The Company also operates approximately two stores selling primarily tobacco products. The stores carry a range of food, including freshly prepared foods such as pizza, donuts, and sandwiches, beverages, tobacco products, health and beauty aids, automotive products and other nonfood items. As of April 30, 2016, the Company operated 1,931 stores.

The Company operates approximately two distribution centers, through which the Company supply grocery Missouri, Oklahoma, Tennessee and Wisconsin. The Marketing Company also has responsibility for all of the Company’s wholesale operations, including both distribution centers. The second subsidiary, Casey’s Services Company (Services Company) provides a range of construction and transportation services for all stores. CGS Sales Corp. operates a store in Iowa and a store in Nebraska, and Tobacco City Inc. operates a store in North Dakota.

The Company’s general store typically carries over 3,000 food and nonfood items. The Company’s stores sell regional brands of dairy and bakery products, and approximately 90% of the stores offer beer. Its non-food items include tobacco products, health and beauty aids, school supplies, housewares, pet supplies, and automotive products. All but one Casey’s General Stores offer gasoline or diesel for sale on a self-service basis. Gasoline and diesel are sold under the Casey’s name.

The Company’s snack centers sell sandwiches, fountain drinks, and other items. As of April 30, 2016, the Company sold donuts prepared on store premises in approximately 99% of the stores in addition to cookies, brownies, and other bakery items. The Company also offers made-from-scratch pizza at its approximately 1,840 stores, as well as ham and cheese sandwiches, pork and chicken fritters, sausage sandwiches, chicken tenders, pizza rolls, popcorn chicken, breakfast croissants and biscuits, breakfast pizza, hash browns, quarter-pound hamburgers and cheeseburgers, and potato cheese bites.

The Company competes with Quik Trip, Kum & Go and Kwik Trip.and general merchandise items to its stores.

The Company’s subsidiary Casey’s Retail Company (Retail Company) operates stores in Illinois, Kansas, Minnesota, Nebraska, North Dakota and South Dakota. The Company’s subsidiary Casey’s Marketing Company (Marketing Company) owns and has responsibility for the operation of stores in Arkansas, Indiana, Iowa, Kentucky”  Reuters