The Pantry's 3Q profit beats expectations

The Pantry's 3Q profit beats expectations despite revenue drop

Associated Press

CARY, N.C. (AP) -- The Pantry jumped in trading Tuesday after the convenience store beat Wall Street expectations for the third quarter.

The Cary, N.C., company earned $14.8 million, or 65 cents per share, for the quarter that ended June 28. That's compared with net income of $19 million, or 84 cents per share, in the same quarter last year. After adjusting for impairment charges, it earned 70 cents per share versus 93 cents per share.

Pantry's total revenue fell to $2.14 billion from $2.26 billion on weaker fuel revenue.

Analysts polled by FactSet were expecting the company to earn 64 cents per share on an adjusted basis with revenue of $2.15 million.

The company is struggling with weaker fuel sales and higher wholesale fuel costs, which are eating into its margins. Pantry said that fuel sale revenue dropped 5 percent overall year-over-year. Its fuel revenue at stores open at least a year, a key measure as it strips away the impact of recently opened or closed stores, dropped 3.6 percent.

Pantry has made up for that with improved sales of merchandise in its stores and cost controls overall.

Shares in The Pantry Inc. rose 77 cents, more than 5 percent, to $15.36.

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