Casey's General Stores Goes
Down Down Down!

Down For Casey’s – Up For Us!

Casey's General Stores Inc. (NASDAQ:CASY)

Options Puts Provides 436% Profit!

by Ian Harvey

December 13, 2017


Casey's General Stores Inc. (NASDAQ:CASY)

Here is an update of Casey's General Stores Inc. (NASDAQ:CASY) winning options put trade after reporting earnings. This options trade was recommended, as a consideration, on Monday, December 11, 2017 --  in the article “Earnings Predictions for the Week Beginning December 11, 2017”-- producing excellent potential profits of 436% within 24 hours of executing the trade!


The Recommendation……

…….from “Earnings Predictions for the Week Beginning December 11, 2017”.

The Details……..

Casey's General Stores Inc. (NASDAQ:CASY) -- operating convenience stores under the name Casey's General Store in approximately 10 Midwestern states, in Iowa, Missouri, and Illinois, will report earnings after the market closes.               

The consensus earnings estimate is $1.38 per share on revenue of $2.13 billion and the Earnings Whisper number is $1.42 per share. Investor sentiment going into the company's earnings release has 71% expecting an earnings beat. Consensus estimates are for earnings to decline year-over-year by 4.17% with revenue increasing by 10.93%.

Consensus estimates are for earnings to decline year-over-year by 4.17% with revenue increasing by 10.93%.

Overall earnings estimates have been revised lower since the company's last earnings release.

Casey’s derives ~60% of its total revenue by selling fuel. The business is highly unpredictable due to underlying volatility in fuel prices. Since the Fuel segment is Casey’s largest segment, its performance defines the company’s overall performance in any given quarter. The segment recorded a year-over-year decline in sales during eight quarters between 3Q15 and 2Q17. Since 2Q17, fuel sales have gained momentum and shown strength.

Casey’s has missed consensus revenue expectations in the last five consecutive quarters and bottom-line expectations in four of the five quarters.

The Trade……..

Option trade to consider: Buy the CASY JAN 19 2018 120.000 PUT at approximately $2.35.

The Report………

Shares of Casey's fell after reporting on Tuesday after posting disappointing results in its second-quarter earnings report. Casey' missed bottom-line estimates as growth in the key prepared-food segment was not as strong as management had projected.

Casey's said that total revenue increased 12.1% in the quarter to $2.15 billion, beating estimates at $2.13 billion as the company opened its 2,000th store in the period. However, gross margin fell 140 basis points to 21.7%, leading to earnings per share declining from $1.44 to $1.28. That figure was below analyst expectations at $1.38.

Comparable sales growth in prepared foods slowed to just 2.1%, considerably below the company's own guidance at 4% to 6% as CEO Terry Handley noted a slowdown in traffic in the second half of the quarter. Margins in the segment also fell from 62.9% a year ago to just 61.3%, missing guidance at 61.5% to 62.5%.

End Result……..

The stock closed down 11.6%. Obviously investors were unwilling to forgive Casey’s for the weakness in prepared foods, and the company's guidance signaled that those problems would continue. Casey's called for comparable sales in prepared food to grow 2% to 4%, down from a prior range of 4% to 6%. If margins continue falling in that category as well, Casey's will struggle to grow profits despite its expansion.

Monday morning saw the stock sitting at $125.10.

By the close on Tuesday the stock price was down to $107.18, -$14.07 or -11.60%.

The Profit……..

So, for those traders who managed to execute this trade recommended by Stock Options Made Easy; a nice tidy potential profit of 436% within 24 hours.



As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but during earnings season this strategy has been very profitable.

Our approach is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.

Our proven track record says it all!!

Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.

What To Do Now…….

If you interested in being part of this profitable action just click here……

Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


”Success is simple. Do what's right, the right way, at the right time.”

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Options traders are not successful because they win.
Options traders win because they are successful.

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