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Things You Need to Know Before Casey's (CASY) Q4 Earnings

Casey's General Stores, Inc. CASY is anticipated to report an increase in revenues for the fourth quarter of fiscal 2024, with results slated on Jun 11 after market close. The Zacks Consensus Estimate for revenues is pegged at $3,482 million, which implies a 4.6% rise compared to the same period last year.

The company's earnings per share are also expected to improve year over year. Although the Zacks Consensus Estimate for fourth-quarter earnings per share has decreased by a couple of cents to $1.70 over the past seven days, this figure still indicates a 14.1% increase from the prior-year period.

This Ankeny, IA-based company has a trailing four-quarter earnings surprise of 12%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 5.9%.

Key Factors to Consider

Casey's is poised for a revenue increase in the fourth quarter, driven by its strong performance in high-margin segments and strategic expansion initiatives. The company's emphasis on prepared food and dispensed beverage, as well as grocery and general merchandise categories, has bolstered its profitability, supported by effective pricing strategies and operational efficiencies.

We anticipate an 8.8% increase in sales for the grocery and general merchandise category in the fourth quarter. The prepared food and dispensed beverage segment is expected to follow suit with projected growth of 12.2%. Consequently, inside sales are projected to increase 9.7%, with inside same-store sales anticipated to rise 4.4%.

Additionally, Casey's ongoing expansion through new store openings and acquisitions, including entering new markets, has broadened its customer base and geographic reach. The implementation of innovative technologies, such as a digital production planner, further optimizes store operations and reduces waste, enhancing overall efficiency. These factors, coupled with robust customer engagement through loyalty programs and innovative product offerings, create a favorable environment for revenue growth.

While the aforementioned factors raise optimism, challenges such as rising operating expenses present potential risks to margins. We expect operating expenses to rise 9% in the final quarter.

Casey's General Stores, Inc. Price, Consensus and EPS Surprise

Casey's General Stores, Inc. Price, Consensus and EPS Surprise
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

What Does the Zacks Model Unveil?

Our proven model does not conclusively predict 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 not the case here.

Casey's has an Earnings ESP of -8.04% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season:

Dave & Buster's Entertainment PLAY currently has an Earnings ESP of +12.61% and a Zacks Rank of 3. The company’s bottom line is expected to increase year over year when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for the quarter is pegged at $1.55, which suggests an increase of 6.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dave & Buster's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $614 million, which indicates an increase of 2.8% from the figure reported in the prior-year quarter. PLAY has a trailing four-quarter earnings surprise of 31.2%, on average.

General Mills GIS currently has an Earnings ESP of +0.56% and a Zacks Rank of 3. The company is likely to register a decline in the bottom line when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 99 cents suggests a drop of 11.6% from the year-ago reported number.

General Mills’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.88 billion, which calls for a fall of 2.9% from the prior-year quarter. GIS has a trailing four-quarter earnings surprise of 7.2%, on average.

The Kroger Co. KR currently has an Earnings ESP of +0.83% and a Zacks Rank of 3. The company is likely to register a bottom-line decrease when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.33 suggests a decline of 11.9% from the year-ago quarter.

Kroger’s top line is expected to fall marginally year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $45 billion, which indicates a marginal decline of 0.3% from the figure reported in the prior-year quarter. KR has a trailing four-quarter earnings surprise of 8.5%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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General Mills, Inc. (GIS) : Free Stock Analysis Report

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Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report

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