Casey & General Stores Outperforms Despite Market Turmoil

| About: Casey's General (CASY)
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Casey & General Stores (NASDAQ:CASY) has been trading ahead of the broader market amid recent turmoil and over the long-term. While grocers and food retailers have been slowing down, convenience stores like CASY have been outperforming. CASY has been consistently outperforming the Dow Jones (NYSEARCA:DIA), S&P 500 (NYSEARCA:SPY) and the Nasdaq (QQQQ). The company offers a dividend yield of 1.2%, while the majority of its industry peers pay no dividend at all.

Company Description

Casey & General Stores, Inc. together with its subsidiaries, operate convenience stores under the Casey’s General Stores name in the Midwest states. It has operations in Iowa, Missouri, Illinois Kansas, Minnesota, Nebraska, South Dakota, Wisconsin, and Indiana. The company was founded in 1959 and is headquartered in Ankeny, Iowa.

Solid Growth

The company reported an all-time high in earnings for the first fiscal quarter, surpassing the consensus estimate by nearly 18% and noting that the record quarter gave CASY a solid foundation for meeting its annual performance goals. During the past 5 consecutive quarters, the company missed analyst forecasts only once and on average topped estimates by 11%.

First-quarter sales were up 16.8% to $1.3 billion. Same-store gallons sold increased by 0.50%. Grocery and other merchandise same-store sales climbed 4.7%, and prepared food and fountain drinks same-store sales jumped 12.3 percent.

Favorable Comparison and Higher Expectations

CASY offers a dividend yield of 1%, which exceeds the industry average as CASY’s industry group pays little to no income. The company’s return on equity (ROE) is 13%, which beats industry average of 5%.

Analyst earnings estimates for the year ending April 2009 of $1.58 per share are above last month’s expectations of $1.56. The most accurate projection of $1.63 per share is a more bullish one.