U.S. Markets open in 8 hrs 33 mins

Casey's General Stores, Inc. (NASDAQ:CASY): What's The Analyst Consensus Outlook?

Simply Wall St

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

The latest earnings update Casey's General Stores, Inc. (NASDAQ:CASY) released in June 2019 showed that the company experienced a major headwind with earnings deteriorating by -36%. Below is a brief commentary on my key takeaways on how market analysts perceive Casey's General Stores's earnings growth trajectory over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.

See our latest analysis for Casey's General Stores

Analysts' expectations for the coming year seems rather subdued, with earnings increasing by a single digit 6.4%. The growth outlook in the following year seems much more optimistic with rates reaching double digit 14% compared to today’s earnings, and finally hitting US$245m by 2022.

NasdaqGS:CASY Past and Future Earnings, July 1st 2019

Even though it is helpful to be aware of the growth rate each year relative to today’s level, it may be more valuable analyzing the rate at which the earnings are rising or falling on average every year. The advantage of this technique is that it ignores near term flucuations and accounts for the overarching direction of Casey's General Stores's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 6.2%. This means, we can presume Casey's General Stores will grow its earnings by 6.2% every year for the next couple of years.

Next Steps:

For Casey's General Stores, I've compiled three key factors you should further research:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation: What is CASY worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CASY is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of CASY? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.