Quarterly Profits for Casey’s General Stores Inc Slides 3.1Percent

Ankeny, Iowa based Casey's General Stores Inc. said that its earnings dropped 3.1percent in the latest quarter. The company's revenue missed the expectations of the analysts.

The chain of convenience stores and gas-station operator reported higher food sales and enhanced margins with its move to keep its stores open 24 hours a day. It also remodeled stores and expanded its pizza-delivery and beverage offerings.

The company reported boosted gasoline sales volume at established stores by 1.6percent. The fuel margin, leaving credit-card fees dropped to 18.1 cents per gallon from 22 cents a gallon. The total fuel sales revenue dropped 16 percent to $888.7 million.

Low fuel price of benefitted the cigarette sales and other grocery and merchandise business. However, prepared food along with some other segments got a boost from the lower cost of cheese. At established stores revenue from fuel sales increased1.6percent, while the grocery sales got 7.1percent boost.

Casey's reported profit of $38.1 million or 97 cents per share for the quarter that ended on January 3. That's down from $39.3 million or $1.01 a share in the previous year. Revenue slid 6.3percent to $1.57 billion.