USA: Casey's General Stores Defies Economic Gloom
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Wednesday, 08 October 2008 |
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Casey's General Stores, Inc. is proving that even when the economy
slows, consumers will still pull over to purchase such novelties as
chewing gum and fountain soda. The company's share price has been
rallying since mid July.
Casey General Stores, Inc. operates 1,468 convenience stores in the Midwest of the USA. The company was founded in 1959, has a market cap of $1.55 billion and is headquartered in Ankeny, Iowa.
Casey's stepped up and delivered solid first-quarter results in September demonstrating the company's ability to weather a gloomy economy. Revenue increased 22% from last year to $1.57 billion.
When excluding one-time items due to flood damages, earnings increased to $31.3 million, up from $29.8 million in the same period last year. This produced earnings of 60 cents per share, ahead of analyst estimates of 51 cents.
This is the second time in the last two quarters that Casey has surprised and beaten analyst estimates. Casey reported that higher fuel prices led to its customers purchasing less gallons per visit, but also mentioned that grocery and other merchandise same-store sales were up 4.7% from last year. Prepared food and fountain drink same-store sales were up 12.3% from last year.
PetrolWorld 071008
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