UPDATE 1-Casey's Q1 profit tops market estimates

* Q1 EPS $0.87 vs est $0.60

* Q1 revenue $1.19 bln, in line with estimates

* Shares up 8 pct in after-market trade

Sept 8 (Reuters) - Retailer Casey's General Stores Inc (CASY.O) posted a higher quarterly profit that handily topped estimates, helped by strong gas margins and lower expenses, sending its shares up 8 percent in trading after the bell.

For the first quarter ended July 31, net income rose to $44.2 million, or 87 cents a share, from $28.8 million, or 57 cents a share, a year ago.

Revenue fell 24 percent to $1.19 billion.

Analysts on average were looking for a profit of 60 cents a share on revenue of $1.19 billion, according to Reuters Estimates.

Casey's, which expects to increase its total number of stores by 4 percent in 2010, said same-store gasoline gallons sold during the quarter were up 3.2 percent with an average margin of 15.7 cents per gallon.

Lower fuel prices have helped the company -- which runs convenience stores that sell prepared food, tobacco, beverages and health products, as well as gasoline -- reduce transportations costs and credit card fees.

Shares of the Ankeny, Iowa-based company were up 8 percent at $30.33 after the bell. They closed at $28.19 Tuesday on Nasdaq. (Reporting by Viraj Nair in Bangalore; Editing by Unnikrishnan Nair)