Casey’s General Stores (NASDAQ: $CASY) released its third quarter fiscal 2025 results on Tuesday, March 11, 2025, after markets closed to a positive market reception. Here is an in-depth look at the third quarter results.
Casey’s Q3 Results
For the third quarter, Casey’s reported revenue of $3.9 billion, beating estimates of $3.772 billion. Adjusted earnings per share came in at $2.33, beating estimates of $2.00. Overall, Casey’s reported robust growth in the third quarter, especially in sales, driven by strategic expansion through acquisitions.
Other Q3 Highlights
Casey’s reported a net income of $87.097 million compared to $86.933 million the previous year. Meanwhile, EBITDA was up 11.4% YoY to $242.4 million, while inside sales came in at $1.4 billion compared to $$1.2 billion the previous year.
Casey’s sold 829,761 gallons of fuel in Q3 compared to 689,251 the same period last year, while the fuel gross profit increased 17.4% YoY to $302.06 million compared to $257.25 million the previous year. However, the fuel margin dropped to 36.4¢ per gallon compared to 37.3¢ per gallon the previous year.
Casey’s reported an 18% YoY increase in operating expenses to $670.20 million, compared to $568.91 million the previous year. As of the end of the third quarter, Casey’s had 2,893 stores, with 21 new constructions, and 228 acquisitions.
Casey’s ended Q3 with around $1.3 billion in liquidity, consisting of around $395 million in cash, and cash equivalents, and around $900 million available via lines of credit, and borrowing capacity.
Shareholder Returns
Casey’s announced that it has $295 million remaining under its existing share buyback plan, with no shares bought during the third quarter. It also announced a dividend of $0.50 per share.
Fiscal 2025 Guidance
For the whole of fiscal 2025, Casey’s now expects EBITDA to grow around 11% YoY, an increase from its previous forecast. Same-store inside sales growth forecast was maintained at 3% to 5%, while same-store fuel gallon growth is expected to remain at -1% to +1% for the full year. It forecast that the purchase of property and equipment was expected to be around $500 million.
Casey’s (CASY) Market Performance
Following the robust Q3 results, CASY shares soared 5.52% to $403.24 per share on Wednesday, March 12, 2025 as of 10:08 AM EDT. Over the past six months, the shares have gained 4.59%, while over the past year, the stock is up 35.91%.
The stock is trading below its 50-day moving average of $409.52, but above its 200-day moving average of $388.77.
Analysts are optimistic about the future of CASY, giving it a moderate buy rating. They forecast an average price of $458.00, which is a 14.58% upside. The analysts give a wide range of price targets, with a high of $485, and a low of $430.
Is Casey’s A Buy Following Its Q3 Results
Based on the results, management seems focused on carefully managing integration costs, while gaining efficiency improvements. With growth supported by a strategy of expansion through acquisitions, Casey’s strategy appears rock solid.
The company’s stock performance is backed by solid growth amid macroeconomic headwinds, which positions it well for great long-term growth. Consequently, adding CASY to your portfolio could potentially pay off in the long term.
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