Casey's General Stores profit beats estimates

Mon Sep 10, 2012 6:10pm EDT

(Reuters) - Casey's General Stores (CASY.O) posted a better-than-expected quarterly profit, helped by higher margins at its prepared foods and grocery businesses, sending its shares up about 5 percent in extended trading.

The convenience store operator's net income fell slightly to $39 million, or $1.01 per share, from $39.4 million, or $1.03 cents per share, a year earlier.

Casey's, which competes with Quik Trip Corp and Kwik Trip Inc, said revenue fell marginally to $1.87 billion.

Analysts on average had expected earnings of 95 cents per share on revenue of $1.93 billion, according to Thomson Reuters I/B/E/S.

Margins at its grocery and merchandise segment rose to 33.4 percent from 32.5 percent while margins at its prepared food and fountain business rose to 63.5 percent from 61.2 percent.

Shares of the Ankeny, Iowa-based company, which have risen more than 20 percent over the past one year, rose to $60 after closing at $55.66 on Monday on the Nasdaq.

(Reporting by Garima Goel and Aditi Shrivastava in Bangalore; Editing by Don Sebastian)

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