06:23 AM EDT, 03/12/2024 (MT Newswires) -- Casey's General Stores (CASY) shares declined early Tuesday after the convenience store operator's fiscal third-quarter net income fell partially due to higher expenses from operating more stores, while its revenue trailed market estimates.

Per-share earnings came in at $2.33 for the quarter ended Jan. 31, down from $2.67 the year before, the company said late Monday, topping the Capital IQ-polled consensus of $2.14. Operating expenses widened to $568.9 million from $515.7 million, with roughly 6% of the increase accounting for the company running 167 more stores versus a year earlier.

A robust annual fuel margin comparison also weighed on the bottom line, while Casey's lapped a one-time $15 million operating expense benefit from the resolution of a legal matter last year. The stock was down 1.6% in premarket trading.

Revenue remained nearly flat at $3.33 billion, but missed the Street's view for $3.51 billion. Inside same-store sales advanced 4.1%. Grocery and general merchandise same-store sales rose 2.8%, compared with a 3.2% gain modeled by analysts, while prepared food and dispensed beverages climbed 7.5%.

"Casey's delivered another solid quarter highlighted by inside gross profit growth," Chief Executive Darren Rebelez said in a statement. "Our fuel team navigated a rising cost environment and delivered nearly flat gallon volume and a 37.3 cents per gallon fuel margin."

The convenience store operator continues to anticipate same-store inside sales to increase by 3.5% to 5% for fiscal 2024. It also reiterated its outlook for same-store fuel gallons sold to be down 1% to up 1%, and operating expenses to rise by about 6% to 8%.

Adjusted earnings before interest, taxes, depreciation and amortization for the ongoing fiscal year is forecast to be in-line with the company's long-term strategic growth target of 8% to 10%, unchanged from its prior guidance. Casey's is still looking to add at least 150 stores in 2024 and repurchase a minimum of $100 million shares.

Price: 294.01, Change: -4.75, Percent Change: -1.59