Higher grocery margins boosted quarterly profits above forecasts at Casey’s General Stores (NASDAQ:CASY), sending its shares higher.
The company announced on Tuesday that it earned $39 million during its fiscal first quarter, down from $39.4 million in the same period last year.
Revenue also dipped slightly to $1.87 billion, falling short of the $1.93 billion that Wall Street expected, Reuters noted.
EPS for the first quarter was $1.01. That topped the 95 cents a share that analysts had forecast.
Shares of Casey’s General Stores rose almost 5% in mid-day trading on Tuesday.
Company officials noted that margins for merchandise and groceries increased to 33.4%, up form 32.5% a year ago.
Margins for prepared food and fountain products were even better, rising to 63.5%, up from 61.2% last year.
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