Casey's (CASY) Set to Report Q2 Earnings: Factors to Note
Casey's General Stores, Inc. CASY is likely to register an increase in the top line when it reports second-quarter fiscal 2024 numbers on Dec 11 after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $4,151 million, indicating an increase of 4.3% from the prior-year reported figure.
The bottom line of this operator of convenience stores is expected to have declined year over year. Although the Zacks Consensus Estimate for second-quarter earnings per share has risen 3.7% to $3.65 over the past seven days, it suggests a marginal decrease of 0.5% from the year-ago period.
This Ankeny, Iowa-based company has a trailing four-quarter earnings surprise of 17.5%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 34.5%.
Key Factors to Consider
Casey's price and product optimization strategies, the increased penetration of private brands and digital engagements comprising mobile apps and online ordering capabilities are commendable. The curbside pickup option and Casey’s reward program have been benefiting the overall performance. Moreover, Casey's has partnered with DoorDash and Uber Eats for delivery services. Also, the company’s self-distribution model and acquisition activities bode well.
Casey's is poised for noteworthy growth across its key business categories. Our projection indicates a robust 6.9% increase in sales for the Grocery & General Merchandise category. The Prepared Food & Dispensed Beverage segment is expected to follow suit with projected growth of 6.6%. In the fuel category, our forecast points to a decent 3% increase in sales. These estimates underscore Casey’s potential for well-rounded performance across its diverse product offerings.
While the aforementioned factors raise optimism, we cannot ignore margins. We expect the operating margin to shrink 40 basis points during the quarter under review. This is due to higher operating expenses. We expect operating expenses to increase 6.9% year over year. This is likely to be reflected in the bottom line.
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
What Does the Zacks Model Unveil?
Our proven model predicts an earnings beat for Casey's this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Casey's has an Earnings ESP of +13.86% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other 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:
Dollar Tree DLTR currently has an Earnings ESP of +0.25% and a Zacks Rank #3. The company is likely to register a bottom-line increase when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $2.65 suggests an increase from $2.04 reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar Tree’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $8.67 billion, which indicates a rise of 12.4% from the figure reported in the prior-year quarter.
Costco COST currently has an Earnings ESP of +1.40% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.44 implies a rise of 11% from the year-ago reported number.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $57.62 billion, which calls for an increase of 5.8% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 2.1%, on average.
Target TGT currently has an Earnings ESP of +0.37% and a Zacks Rank of 2. The company is likely to register a bottom-line increase when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $2.38 suggests a rise from $1.89 reported in the year-ago quarter.
Target’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $31.88 billion, which indicates a rise of 1.6% from the figure reported in the prior-year quarter. TGT has a trailing four-quarter earnings surprise of 30.8%, on average.
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Target Corporation (TGT) : Free Stock Analysis Report
Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
