The stock of motor fuel retailer Murphy USA Inc. (MUSA - Free Report) has gained 1.7% since its second-quarter earnings announcement on Jul 28. The company managed to score top and bottom-line beats.
What Did Murphy USA’s Earnings Unveil?
Murphy USA announced second-quarter 2021 earnings per share of $4.79, which beat the Zacks Consensus Estimate of $3.39. The outperformance could be attributed to higher retail gasoline price and contribution from the QuickChek acquisition.
However, the company’s bottom line compared unfavorably with the year-earlier quarter's earnings of $5.73 due to a lower retail margin of 28.2 cents per gallon that fell 26.4% year over year.
Meanwhile, Murphy USA’s operating revenues of $4.5 billion soared 87.3% year over year and beat the Zacks Consensus Estimate by $117 million due to improved petroleum product sales.
Revenues from petroleum product sales came in at $3.4 billion, more than doubling from the second quarter of 2020 and 3.18% above the Zacks Consensus Estimate. Merchandise sales, at $963.4 million, rose 25.6% year over year but fell short of the Zacks Consensus Estimate of $975 million.
Balance Sheet
As of Jun 30, Murphy USA — which opened three new retail locations and closed one in the quarter to take its store count to 1,662 — had cash and cash equivalents of $165 million, and long-term debt (including lease obligations) of $1.8 billion, with a debt-to-capitalization of 70.3%.
During the quarter, the company bought back shares worth $148.3 million.
Guidance
The company projects 2021 fuel volume in a range of 232-238 thousand gallons on APSM basis, decreasing from 245-255 before. The downward revision reflects a less-than-expected pickup in volumes. Further, Murphy USA’s 2021 guidance includes 34 to 38 new stores and up to 31 raze-and-rebuilds, $690-$700 million in merchandise margin contribution, and $325-$375 million in capital expenditures.
Zacks Rank & Stock Picks
Murphy USA carries a Zacks Rank #3 (Hold).
Some better-ranked players in the energy space are Ovintiv (OVV - Free Report) , EOG Resources (EOG - Free Report) and Suncor Energy (SU - Free Report) . All the companies sport a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Ovintiv has an expected earnings growth rate of 1,177.14% for the current year.
EOG Resources has an expected earnings growth rate of 389.04% for the current year.
Suncor Energy has an expected earnings growth rate of 281.82% for the current year.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The stock of motor fuel retailer Murphy USA Inc. (MUSA - Free Report) has gained 1.7% since its second-quarter earnings announcement on Jul 28. The company managed to score top and bottom-line beats.
What Did Murphy USA’s Earnings Unveil?
Murphy USA announced second-quarter 2021 earnings per share of $4.79, which beat the Zacks Consensus Estimate of $3.39. The outperformance could be attributed to higher retail gasoline price and contribution from the QuickChek acquisition.
However, the company’s bottom line compared unfavorably with the year-earlier quarter's earnings of $5.73 due to a lower retail margin of 28.2 cents per gallon that fell 26.4% year over year.
Meanwhile, Murphy USA’s operating revenues of $4.5 billion soared 87.3% year over year and beat the Zacks Consensus Estimate by $117 million due to improved petroleum product sales.
Revenues from petroleum product sales came in at $3.4 billion, more than doubling from the second quarter of 2020 and 3.18% above the Zacks Consensus Estimate. Merchandise sales, at $963.4 million, rose 25.6% year over year but fell short of the Zacks Consensus Estimate of $975 million.
Balance Sheet
As of Jun 30, Murphy USA — which opened three new retail locations and closed one in the quarter to take its store count to 1,662 — had cash and cash equivalents of $165 million, and long-term debt (including lease obligations) of $1.8 billion, with a debt-to-capitalization of 70.3%.
During the quarter, the company bought back shares worth $148.3 million.
Guidance
The company projects 2021 fuel volume in a range of 232-238 thousand gallons on APSM basis, decreasing from 245-255 before. The downward revision reflects a less-than-expected pickup in volumes. Further, Murphy USA’s 2021 guidance includes 34 to 38 new stores and up to 31 raze-and-rebuilds, $690-$700 million in merchandise margin contribution, and $325-$375 million in capital expenditures.
Zacks Rank & Stock Picks
Murphy USA carries a Zacks Rank #3 (Hold).
Some better-ranked players in the energy space are Ovintiv (OVV - Free Report) , EOG Resources (EOG - Free Report) and Suncor Energy (SU - Free Report) . All the companies sport a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Ovintiv has an expected earnings growth rate of 1,177.14% for the current year.
EOG Resources has an expected earnings growth rate of 389.04% for the current year.
Suncor Energy has an expected earnings growth rate of 281.82% for the current year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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