Casey's General Stores Looks Dangerous
Casey's General Stores: Fuel Sales Are Now The Sideshow
Tristan R. Brown
Tristan R. Brown
Wed, Sep. 14, 2:09 PM
- All eyes in the retail sector will be on the Department of Commerce's report on August sales tomorrow. Economists will be looking for confirmation that the dip into negative territory in July was only transitory. The impact of the recent slowdown in auto sales has been debated, with some analysts saying it's indicative of tight consumer spending, while others feel it reverses the "crowding out" effect of auto purchases.
- The consensus estimate is for a 0.4% M/M gain after backing out the gas and auto categories. The direction of U.S. retail sales will also give Fed watchers their latest talking point.
- If there's a wildcard in the mix, it could be price deflation in the grocery store category (KR, SFM, WFM, SVU, WMK, IMKTA). That pricing weakness could also spill over to affect general merchandise stores (WMT, TGT), drug store chains (WBA, RAD), and even nip at chains like Casey's General Stores (NASDAQ:CASY) and CST Brands (NYSE:CST).
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, UGE, SZK.
Thu, Sep. 8, 8:38 AM
- Execs in the grocery sector have painted a bleak picture this week on current sales trends during their presentations at various retail conferences.
- Weak pricing has been a major talking point, while some companies say a lower level of government benefits have also come into play.
- While the down trend was tipped off a few weeks ago when the Commerce Department reported a drop in grocery store sales for July, the new twist is that companies such as Supervalu (NYSE:SVU) and Sprouts Farmers Market (NASDAQ:SFM) are now talking about the pressure extending through the end of the year.
- Related stocks: KR, WFM, SFS, IMKTA, WFM, CASY, VLGEA, WMK, TGT, WMT.
Wed, Sep. 7, 12:43 PM
Wed, Sep. 7, 12:27 PM
- Casey's General Stores (CASY -10.4%) trades lower after reporting Q2 results.
- The trend of falling fuel revenue despite higher volume continued, while soft cigarette sales may been an unexpected factor.
- Previously: Caseys General Stores misses by $0.11, misses on revenue (Sept. 6)
Wed, Sep. 7, 9:17 AM
Tue, Sep. 6, 5:35 PM
Tue, Sep. 6, 5:08 PM
Tue, Sep. 6, 4:15 PM
Mon, Sep. 5, 5:35 PM
Mon, Jul. 25, 7:59 AM| Mon, Jul. 25, 7:59 AM
Wed, Jun. 29, 12:46 PM
- Casey's General Stores (NASDAQ:CASY) is up 3.1% after a move up to Goldman Sachs' Conviction Buy list.
- The firm upgraded shares to Buy from Neutral and hiked its price target to $145, from $123 -- implying 13% upside from today's pricing.
- Rising biofuel prices will lift the stock in a "fragmented c-store industry with low borrowing costs and limited financial leverage," Stephen Grambling writes.
- While biofuel will give a tailwind to the convenience store chain's fuel margin, lower food costs combined with higher prices should boost prepared gross margin, he says.
- Even so, Casey's is trading at a 8.5 times fiscal 2017 enterprise value/EBITDA -- a discount to peers in convenience stores (nine times) and defensive retail (11 times), he says.
Tue, Jun. 7, 10:27 AM
- Casey's General Stores (CASY -4.6%) is lower after FQ4 profit missed expectations.
- The top line was strong during the quarter as same-store sales growth was +4.6%, driven higher by a +7.4% grocery comp.
- As expected, fuel margin fell 90 bps Y/Y and 30 bps Q/Q to $0.178.
- Jefferies maintained a Hold rating on Casey's following the earnings release."CASY reported in-linish 4Q16 EPS; however, earnings quality was questionable as EBIT missed our ests. by $3M (cons. by $4M) and a lower tax rate provided a nickel to EPS vs. our ests," wrote analyst Christopher Mandeville.
- Previously: Caseys General Stores misses by $0.03, beats on revenue (June 6)
Mon, Jun. 6, 4:12 PM
Sun, Jun. 5, 5:35 PM
Tue, May 24, 2:34 PM
- Retail stocks continue to do a reset ever since Wal-Mart reported strong earnings at odds with some of its peers.
- A category that performed well for Wal-Mart in Q1 was grocery in what some investors are seeing as more of a read on consumer spending habits than a market share grab from the retail giant.
- Grocery store stocks and a few convenience store names are notably out in front of broad market averages today. The list of gainers includes Village Super Market (VLGEA +6.1%), Weis Markets (WMK +2.5%), Ingles Markets (IMKTA +3.3%), Supervalu (SVU +4.3%), Kroger (KR +1.8%), Casey's General Stores (CASY +2.9%), and CST Brands (CST +2.1%),
Thu, May 19, 9:56 AM
- Grocery store stocks are higher after Wal-Mart reports solid Q1 earnings.
- The read from Bentonville is that U.S. consumers are spending on food even if they give apparel a pass.
- Gainers include Kroger (KR +1.5%), Sprouts Farmers Market (SFM +1.3%), Casey's General Stores (CASY +1.8%), Supervalu (SVU +1.1%), and Whole Foods Market (WFM +1.3%).