Casey’s General Stores (NASDAQ:CASY) stock gained about 6% in the extended trading session yesterday. The upside comes after CASY reported better-than-expected results for the fourth quarter of Fiscal 2024. Moreover, the company raised its quarterly dividend by 16.3%.
CASY is a convenience store chain known for its pizza, groceries, and fuel services. It should be noted that the company has a decent earnings beat history, as it has missed expectations only twice since September 2020.
CASY: Q4 Highlights
Casey’s earnings per share increased 57% year-over-year to $2.34 and came above the Street’s estimate of $1.72. Meanwhile, Q4 net sales increased 8.2% to $3.60 billion and surpassed analysts’ expectations of $3.47 billion.
Furthermore, the company’s inside same-store sales climbed up 5.6% from the prior-year quarter. During the quarter, the company said that strong demand for pizza, bakery products, and beverages, supported top-line growth.
In terms of store count, Casey’s had 2,658 stores as of April 30, 2024, reflecting an increase of 5.4% from 2,521 stores as of April 30, 2023. Importantly, the company disclosed plans to open more than 100 stores in Fiscal 2025.
FY25 Outlook
For the full year Fiscal 2025, CASY expects same-store sales to increase by 3% to 5%. At the same time, it anticipates that same-store fuel gallons sold will be down 1% or up 1%. Further, operating expenses are expected to increase between 6% and 8%.
Dividend Hike
Casey’s increased its quarterly dividend by 16.3% to $0.5 per share. The dividend is payable on August 15 to the investors of record on August 1.
In addition, the company disclosed that it has about $295 million remaining under its existing share buyback authorization.
Is CASY a Good Stock?
Overall, Casey’s has a Moderate Buy consensus rating based on five Buy and five Hold recommendations. The analysts’ average price target on CASY stock of $337.75 implies an upside potential of 3.44% from current levels. Shares of the company have gained by 19.2% year-to-date.
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