Susser Holdings 3Q Profit Drops

For the quarter ended Sept. 30, net income slipped to $4.8 million, or 29 cents per share, from $7.4 million, or 79 cents per share, in the prior-year quarter.

Analysts polled by Thomson Financial expected earnings of 26 cents per share for the quarter.

Cost of sales rose 12 percent with motor fuel costs rising 13 percent during the period.

The company said an increase in the number of shares outstanding in the 2007 quarter also hurt its earnings per share results. The number of shares outstanding jumped 80 percent.

Revenue rose 11 percent to $674 million from $605.1 million in the third quarter of 2006. Analysts predicted revenue of $650.7 million.

The company credited sales growth to strong merchandise sales at its Laredo Taco Co. restaurants, higher sales of packaged drinks and snacks and the impact of a dollar-a-pack increase in the cigarette excise tax in Texas.

Sales were also helped by the opening of 17 new retail stores that bumped up retail store fuel volumes.

Shares rose 16 cents to close at $22.56.