Here's How Casey's (CASY) Looks Placed Ahead of Q2 Earnings
Casey's General Stores, Inc. CASY is likely to register an increase in the top line when it reports second-quarter fiscal 2023 numbers on Dec 6 after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $4,160 million, indicating an improvement of 27.5% from the prior-year reported figure.
The bottom line of this operator of convenience stores is expected to have increased year over year. The Zacks Consensus Estimate for second-quarter earnings per share has increased 5.1% to $3.10 over the past seven days. The figure suggests growth from the earnings of $2.59 in the year-ago period.
This Ankeny, Iowa-based company has a trailing four-quarter earnings surprise of 1.3%, on average. In the last reported quarter, the company’s bottom line missed the Zacks Consensus Estimate by 5.3%.
Key Factors to Note
Casey's price and product optimization strategies, increased penetration of private brands and digital engagements comprising mobile app 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. These factors are likely to have favorably impacted the company’s to-be-reported quarter’s top 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
Casey’s Grocery & General Merchandise category might have contributed to the company’s second-quarter top line. The Zacks Consensus Estimate for sales for the category is pegged at $902 million, which suggests an increase of 8.7% from the prior-year reported figure. The consensus mark indicates a jump of 4% in same-store sales.
Again, the company’s Prepared Food & Dispensed Beverage category may have positively impacted total revenues. The Zacks Consensus Estimate for sales for the category stands at $350 million, which indicates a jump of 13.1% from the prior-year reported figure. Also, the consensus mark suggests growth of 7% in same-store sales.
With respect to the total gallons sold during the quarter under discussion, the Zacks Consensus Estimate suggests an increase of 6.3%. As a result, the Zacks Consensus Estimate for sales in the Fuel category indicates a jump of 41.9% to $2,907 million.
Despite the aforementioned tailwinds, concerns related to higher operating expenses cannot be ignored. Casey's witnessed an increase of 13.4% in operating expenses in the last reported quarter. The metric increased due to operating more stores compared with the same period last year, higher long-term incentive compensations and a rise in same-store credit card fees due to higher retail fuel prices.
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 a Zacks Rank #3 and an Earnings ESP of +12.58%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 More Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Dollar General DG currently has an Earnings ESP of +1.58% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of $2.55 suggests an increase of 22.6% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar General’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.43 billion, which suggests a rise of 10.7% from the figure reported in the prior-year quarter. DG delivered an earnings beat of 2.2%, on average, in the trailing four quarters.
Sprouts Farmers SFM currently has an Earnings ESP of +1.09% and a Zacks Rank of 2. The company is expected to register bottom-line growth when it reports fourth-quarter 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of 37 cents suggests growth of 15.6% from the year-ago quarter’s reported figure.
Sprouts Farmers’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $1.56 billion, indicating an increase of 4.4% from the year-ago quarter. Sprouts Farmers has a trailing four-quarter earnings surprise of 10%, on average.
Kroger KR currently has an Earnings ESP of +1.95% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of 80 cents suggests growth of 2.6% from the year-ago quarter’s reported figure.
Kroger’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $34 billion, indicating an increase of 6.7% from the year-ago quarter. KR has a trailing four-quarter earnings surprise of 15.7%, on average.
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Dollar General Corporation (DG) : Free Stock Analysis Report
The Kroger Co. (KR) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
