A week ago, General Stores Casey’s, Inc. (NASDAQ: CASY) came out with a solid set of annual numbers that could potentially lead to a stock appreciation. Overall results were good, with revenue beating analysts’ forecast by 2.5% to $ 8.7 billion. Statutory earnings per share (EPS) stood at US $ 8.38, some 3.1% above analysts’ expectations. Profits are an important time for investors because they can follow a company’s performance, look at what analysts are forecasting for next year, and see if there has been a change in sentiment towards the company. So we’ve put together the latest post-earnings forecast to see what the estimates suggest for next year.
See our latest review for Casey’s general stores
Based on the latest results, the consensus of nine Casey’s General Stores analysts is forecasting revenue of US $ 10.2 billion in 2022, which would reflect a notable 17% improvement in sales from the past 12 months. Statutory earnings per share are expected to be US $ 8.28, roughly stable from the past 12 months. Yet before the latest results, analysts were forecasting revenues of US $ 10.3 billion and earnings per share (EPS) of US $ 8.35 in 2022. So it’s pretty clear that, although analysts put To update their estimates, there has been no major change in expectations for the company as a result of the latest results.
So it’s no surprise to learn that the consensus price target is largely unchanged at US $ 219. There is another way to think about price targets, however, and that is to look at the range of price targets offered by analysts, as a wide range of estimates might suggest a different view of the possible outcomes for the market. business. There are a few variations of perceptions on Casey’s General Stores, with the most bullish analyst valuing it at US $ 262 and the most bearish at US $ 170 per share. There are certainly different opinions on the stock, but the range of estimates is not wide enough to imply that the situation is unpredictable, in our opinion.
One way to get more context on these forecasts is to look at how they stack up against both past performance and the performance of other companies in the same industry. Analysts certainly expect Casey’s General Stores growth to accelerate, with the 17% annualized growth forecast by the end of 2022 ranking favorably over the historic 6.2% p.a. growth over time. over the past five years. Compare that with other companies in the same industry, which are expected to increase their revenues by 4.6% per year. Given the expected acceleration in revenues, it’s pretty clear that Casey’s General Stores is expected to grow much faster than its industry.
The bottom line
The most important thing to remember is that there has been no major change in sentiment, with analysts once again confirming that the company is performing according to their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue figures, suggesting that sales are moving as expected – and our data suggests that revenue is expected to grow faster than the industry as a whole. The consensus price target has not really changed, suggesting that the intrinsic value of the company has not undergone any major changes with the latest estimates.
That said, the company’s long-term profit trajectory is much bigger than next year. At Simply Wall St, we have a full range of analyst estimates for Casey’s general stores through 2025, and you can view them for free on our platform here.
That said, we still have to consider the ever-present specter of investment risk. We have identified 1 warning sign with Casey’s General Stores and understand that this should be part of your investment process.
This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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