Casey's General Stores Inc (NASDAQ:CASY) Beats on Profit, Raises Outlook Despite Revenue Miss

Casey's General Stores Inc (NASDAQ:CASY) reported financial results for its second fiscal quarter, delivering robust profit growth that exceeded analyst expectations, though revenue fell slightly short of consensus estimates. The convenience store chain's performance highlights the strength of its core operations, even as the market's immediate reaction reflected a nuanced interpretation of the mixed top-and-bottom-line results.

Quarterly Performance vs. Estimates

The company's results for the quarter ended October 31, 2025, presented a familiar dynamic for retail operators: strong profitability on disciplined operations.

• Earnings Per Share (EPS): Casey's reported diluted EPS of $5.53, a 14% increase from the $4.85 reported in the same quarter last year. This result solidly surpassed the analyst consensus estimate of $5.30.
• Revenue: Total revenue reached $4.51 billion, marking a significant 14.2% year-over-year increase from $3.95 billion. However, this figure came in just below the analyst forecast of $4.58 billion.

The divergence between the strong EPS beat and the slight revenue miss is largely explained by the company's impressive margin management across both its fuel and inside sales categories.

Key Drivers from the Press Release

Casey's second-quarter strength was broad-based, driven by growth in store count, positive same-store sales, and expanding profitability.

Inside Sales Momentum: The higher-margin "inside" segment, encompassing grocery items and prepared foods, saw same-store sales rise 3.3%. Prepared food and beverage sales were a standout, growing 4.8% on a same-store basis. The inside gross margin improved to 42.4%, contributing to a 13.5% jump in total inside gross profit to $703.4 million.

Fuel Profitability Expansion: The fuel business performed exceptionally well. While same-store gallons sold increased a modest 0.8%, the company achieved a fuel margin of 41.6 cents per gallon, up from 40.2 cents a year ago. This combination of volume and margin expansion fueled a 20.9% surge in total fuel gross profit to $377.4 million.

Strategic Growth: A key component of the revenue growth was physical expansion. Casey's operated 236 more stores than in the prior-year quarter, a nearly 9% increase in its footprint. The store count reached 2,921 by the end of the quarter.

Updated Fiscal 2026 Outlook

Reflecting the strong first-half performance, management raised its full-year forecast for several key metrics:

• EBITDA is now expected to increase 15% to 17% for the fiscal year.
• Inside same-store sales are projected to rise 3% to 4%, with an inside margin of 41% to 42%.
• The company maintained its outlook for other metrics, including same-store fuel gallons and total operating expense growth.

This updated guidance underscores management's confidence in the ongoing execution of its strategic plan.

Market Reaction and Context

Following the earnings release, Casey's stock traded lower in after-hours activity. This initial reaction suggests investors may be focusing on the slight revenue miss against estimates, even as the company delivered superior profitability and raised its full-year outlook. The performance contrasts with the stock's positive trajectory over the past month, indicating the market is digesting the finer details of the report.

The company's results demonstrate a successful model that balances growth through acquisition and new store construction with operational excellence in existing locations. The ability to grow same-store sales and expand margins in both fuel and merchandise categories points to a resilient business model.

For a detailed breakdown of future quarterly estimates and historical earnings performance, you can review the Casey's earnings and estimates page here.

Disclaimer: This article is for informational purposes only and does not constitute financial advice, an endorsement, or a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.