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Casey’s shares fall after EPS beat as investors debate expectations
The quarter included fuel gross profit growth to $446.9 million, but fuel same-store gallons fell 0.3% and analysts cut targets despite keeping guidance intact.
Casey’s General Stores delivered a 27.7% jump in fiscal 2027 first-quarter EPS while keeping its full-year guidance, but the stock sold off after the results as Wall Street debated whether the business stumbled or whether expectations were simply too high, according to Yahoo Finance.
Several firms said the underlying growth model remains intact despite the market reaction. BMO pointed to healthy traffic and a 7.7% two-year increase in inside same-store sales, while the company reported Prepared Food and Dispensed Beverages same-store sales growth of 4.8%, a 10.7% two-year stack, and gross margin expanding 130 basis points to 59.3%.
Total inside gross profit rose 6.3% to $749.8 million, but the earnings beat was heavily influenced by fuel. Fuel margin reached 47.8 cents per gallon, up 6.8 cents year over year, lifting fuel gross profit 19.6% to $446.9 million, even as fuel same-store gallons slipped 0.3%.
Analyst reactions included target changes and differing outlooks: BofA kept a Buy and cut its target to $875 from $975, Deutsche Bank raised its target to $933 from $927 with a Buy, and RBC lowered its target to $910 from $913 with Sector Perform, according to the report. Wells Fargo and BMO both framed the pullback as more about elevated expectations than a broken model.