European Investor
09 Sep 2026, 09:11
Casey’s Stock Falls 8% Premarket Despite Strong Q1 Earnings as Cost Growth Weighs
Casey’s General Stores (NASDAQ: CASY) shares fell about 8% in premarket trading Wednesday despite reporting strong fiscal first-quarter earnings growth, as investors focused on rising operating costs and unchanged full-year guidance.
For the quarter ended July 31, diluted EPS jumped 27.7% year over year to $7.37, while net income increased 27.1% to $273.7 million. EBITDA rose 17.1% to $485.1 million.
Inside same-store sales increased 3.2%, supported by a 4.8% increase in prepared food and dispensed beverage sales. Inside gross profit climbed 6.3% to $749.8 million, with margin improving to 42.2%.
Fuel was another major earnings contributor. Although same-store gallons declined 0.3%, fuel margin increased to 47.8 cents per gallon from 41 cents a year earlier, helping total fuel gross profit surge 19.6% to $446.9 million.
The weaker point was expenses. Operating expenses increased 8% to $754.1 million, while same-store operating expenses excluding credit-card fees rose 5%. Higher labor rates, insurance costs, credit-card fees and a larger store base contributed to the increase.
Casey’s also left its fiscal 2027 outlook unchanged despite the strong quarter. The company continues to expect EBITDA growth of 8% to 10%, inside same-store sales growth of 2% to 5% and operating expense growth of roughly 5% to 7%.
The 8% premarket decline suggests investors were looking for stronger guidance or greater operating leverage following the company’s strong first-quarter performance.
Casey’s General Stores (NASDAQ: CASY) shares fell about 8% in premarket trading Wednesday despite reporting strong fiscal first-quarter earnings growth, as investors focused on rising operating costs and unchanged full-year guidance.
For the quarter ended July 31, diluted EPS jumped 27.7% year over year to $7.37, while net income increased 27.1% to $273.7 million. EBITDA rose 17.1% to $485.1 million.
Inside same-store sales increased 3.2%, supported by a 4.8% increase in prepared food and dispensed beverage sales. Inside gross profit climbed 6.3% to $749.8 million, with margin improving to 42.2%.
Fuel was another major earnings contributor. Although same-store gallons declined 0.3%, fuel margin increased to 47.8 cents per gallon from 41 cents a year earlier, helping total fuel gross profit surge 19.6% to $446.9 million.
The weaker point was expenses. Operating expenses increased 8% to $754.1 million, while same-store operating expenses excluding credit-card fees rose 5%. Higher labor rates, insurance costs, credit-card fees and a larger store base contributed to the increase.
Casey’s also left its fiscal 2027 outlook unchanged despite the strong quarter. The company continues to expect EBITDA growth of 8% to 10%, inside same-store sales growth of 2% to 5% and operating expense growth of roughly 5% to 7%.
The 8% premarket decline suggests investors were looking for stronger guidance or greater operating leverage following the company’s strong first-quarter performance.
