Casey's General Stores has demonstrated a robust performance in its fiscal third quarter, with shares rising early Wednesday after announcing earnings and revenue that exceeded Wall Street's expectations. For the quarter ending January 31, the company reported a net income of $2.33 per share, unchanged from the same period last year.
Analysts had anticipated a decrease to $1.99 based on FactSet consensus estimates. The stability in net income can be attributed to the increased interest expenses resulting from the significant debt incurred through the $1.15 billion acquisition of CEFCO Convenience Stores' parent company, Fikes Wholesale, completed at the beginning of November, alongside the operational expansion associated with running more stores. Revenue for the quarter surged to $3.9 billion, compared to $3.33 billion in the prior year, surpassing street expectations of $3.73 billion.
In response to premarket trading, shares of Casey's climbed by 2.5%, reflecting investor confidence in the company's strong operational metrics. In terms of same-store sales, an increase of 3.7% was recorded, bolstered by robust performance in the prepared food and dispensed beverage segments. Chief Executive Darren Rebelez highlighted in a statement that hot sandwiches and bakery items performed exceptionally well.
Moreover, grocery and general merchandise same-store sales exhibited a growth rate of 3.3%, which marks an acceleration from last year's 2.8% growth. Rebelez stated, 'Casey's delivered an excellent third quarter highlighted by strong sales growth both inside and outside the store.' Total fuel gallons sold saw a significant uptick of 20.4%, while total inside sales rose by 15.3%, primarily driven by unit growth as a result of the Fikes acquisition. Operating expenses increased to $670.2 million from $568.9 million in the same quarter last year, with approximately 14% of this increase being attributed to the company operating 254 additional stores compared to the previous year.
During this quarter alone, Casey's constructed 21 new stores while also closing 14 branches. Looking ahead to fiscal 2025, Casey's remains optimistic, projecting same-store inside sales to experience growth between 3% and 5%. The company has reiterated its guidance for same-store fuel gallons sold, expecting it to remain stable at a decline of 1% to an increase of 1%.
Operating expenses are anticipated to rise by 11% to 13% for the current fiscal year, while Casey's aims to open approximately 270 new stores in the near future. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are now forecasted to increase by about 11% for fiscal 2025, which is an enhancement from the previous projection of at least 10% growth.
This strategic planning and execution indicate Casey's General Stores' commitment to sustainable growth in both revenue and operational efficiency..