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Casey's (CASY) to Report Q4 Earnings: What's in the Cards?

Casey's General Stores, Inc. CASY fourth-quarter fiscal 2020 results are likely to reflect a decline in the top line. The Zacks Consensus Estimate for revenues is pegged at $1,733 million, indicating a decline of 20.5% from the prior-year reported figure.

However, we note that the Zacks Consensus Estimate for earnings for the quarter under review has improved by 10.8% over the past seven days to $1.44. Moreover, the figure suggests a sharp increase from 68 cents reported in the year-ago period.

Notably, this Iowa-based company has a trailing four-quarter positive earnings surprise of 21.1%, on average. In the last reported quarter, the company delivered a positive earnings surprise of 4.6%.

Key Factors to Note

The coronavirus outbreak-induced stay-at-home orders and social distancing are likely to have impacted Casey's top-line performance. In a release, management had earlier pointed that the pandemic has resulted in lower store traffic and decline in demand across its business. The company has also been grappling with soft fuel gallons same-store sales for quite some time now.

Nonetheless, Casey's focus on price and product optimization, loyalty program, digital engagements comprising mobile app and online ordering capabilities, cost containment efforts and capital reallocation plan are expected to have aided its performance. The company has been focusing on improving distribution efficiency. It expanded delivery via DoorDash and also made 50 additional grocery items available through the same at 579 stores.

Notably, to mitigate the impact of COVID-19 and optimize cash flow, management has undertaken some bold steps. Casey's decided to defer capital expenditures, revisit payment terms with suppliers, lower inventory levels and adjust store operating hours. The company also announced plans to lower production of prepared foods in order to put a check on in-store stale costs.

Caseys General Stores, Inc. Price, Consensus and EPS Surprise

Caseys General Stores, Inc. Price, Consensus and EPS Surprise
Caseys General Stores, Inc. Price, Consensus and EPS Surprise

Caseys General Stores, Inc. price-consensus-eps-surprise-chart | Caseys General Stores, Inc. Quote

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What Does the Zacks Model Unveil?

Our proven model predicts an earnings beat for Casey's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Casey's has a Zacks Rank #3 and an Earnings ESP of +40.82%.

3 More Stocks With the Favorable Combination

Here are some other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:

Guess GES currently has an Earnings ESP of +12.75% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dave Busters Entertainment PLAY has an Earnings ESP of +14.46% and a Zacks Rank #3 at present.

General Mills GIS currently has an Earnings ESP of +0.76% and a Zacks Rank #3.

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Guess, Inc. (GES) : Free Stock Analysis Report
 
General Mills, Inc. (GIS) : Free Stock Analysis Report
 
Caseys General Stores, Inc. (CASY) : Free Stock Analysis Report
 
Dave Busters Entertainment, Inc. (PLAY) : Free Stock Analysis Report
 
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