06:35 AM EDT, 03/12/2025 (MT Newswires) -- Casey's General Stores (CASY) shares rose early Wednesday as the convenience store operator's fiscal third-quarter earnings and revenue came in ahead of Wall Street estimates.

Net income came in at $2.33 per share for the quarter ended Jan. 31, unchanged from a year earlier, the company said late Tuesday, compared with the FactSet-polled consensus for a decrease to $1.99. Casey's attributed the flat result to higher interest expense due to the debt assumed through its $1.15 billion acquisition of CEFCO Convenience Stores' parent Fikes Wholesale completed in the beginning of November and operating more stores.

Revenue advanced to $3.9 billion from $3.33 billion last year, ahead of the Street's view for $3.73 billion. Shares of the company gained 2.5% in the most recent premarket activity.

Inside same-store sales increased 3.7% buoyed by the prepared food and dispensed beverage segment, "with hot sandwiches and bakery performing quite well," Chief Executive Darren Rebelez said in a statement. Grocery and general merchandise same-store sales inclined 3.3%, accelerating from last year's growth of 2.8%.

"Casey's delivered an excellent third quarter highlighted by strong sales growth both inside and outside the store," according to Rebelez. "Total fuel gallons sold were up 20.4% while total inside sales rose 15.3% primarily due to unit growth, including the Fikes acquisition."

Operating expenses rose to $670.2 million from $568.9 million in the prior-year quarter, with about 14% of the increase due to the company running 254 more stores versus last year. Casey's constructed 21 new stores during the quarter and closed 14 branches.

For fiscal 2025, Casey's continues to project same-store inside sales to increase around 3% to 5%. It also reiterated its same-store fuel gallons sold guidance to be down 1% to up 1%. Operating expenses are still pegged to rise by 11% to 13% for the ongoing fiscal year, while the company maintained its target to open about 270 stores.

Adjusted earnings before interest, taxes, depreciation and amortization are now set to grow roughly 11% for fiscal 2025, compared with the company's prior forecast for an increase of at least 10%.