The stock of motor fuel retailer Murphy USA Inc. (MUSA - Free Report) has lost 6.7% since its fourth-quarter earnings announcement on Feb 2. While MUSA managed to score comfortable top and bottom-line beats, the negative investor reaction could probably be attributed to rising costs due to inflationary pressure and a higher wage bill. As a matter of fact, the company’s quarterly average operating expenses (excluding payment fees and rent) jumped 40.8% year over year to $30,000 on an average per store month (or APSM) basis.
What Did Murphy USA’s Earnings Unveil?
Murphy USA announced fourth-quarter 2021 earnings per share of $4.23, which beat the Zacks Consensus Estimate of $3.68 and nearly doubled from the year-earlier bottom line of $2.16. The outperformance could be attributed to a rise in the retail gasoline price, contribution from the QuickChek acquisition and a higher retail margin of 27.7 cents per gallon that was up 38.9% year over year.
Meanwhile, Murphy USA’s operating revenues of $4.8 billion soared 66.6% year over year and beat the consensus mark by $111 million primarily due to improved petroleum product sales.
Revenues from petroleum product sales came in at $3.8 billion, up 82.2% from the fourth quarter of 2020 and 2% above the Zacks Consensus Estimate. Merchandise sales, at $927.7 million, rose 24.7% year over year and outperformed the Zacks Consensus Estimate of $911 million.
Balance Sheet
As of Dec 31, Murphy USA — which opened 12 new retail locations in the quarter and closed two to take its store count to 1,679 — had cash and cash equivalents of $256.4 million, and long-term debt (including lease obligations) of $1.8 billion, with a debt-to-capitalization of 69%.
During the quarter, MUSA bought back shares worth $123.5 million.
Guidance
The company projects 2022 fuel volume in a range of 235 to 245 thousand gallons on the APSM basis. Further, Murphy USA’s 2022 guidance includes up to 45 new stores and up to 35 raze-and-rebuilds, $740-$760 million in merchandise margin contribution, and $350-$400 million in capital expenditures.
Zacks Rank & Stock Picks
Murphy USA currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy space could look at better options like Vermilion Energy (VET - Free Report) , ConocoPhillips (COP - Free Report) and ExxonMobil (XOM - 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.
Vermilion Energy: Vermilion Energy is valued at around $2.8 billion. The Zacks Consensus Estimate for VET’s 2022 earnings has been revised 40% upward over the past 60 days.
Vermilion Energy delivered a four-quarter average earnings surprise of 54.4%, including a 100% beat in Q3. VET shares have gained around 172.6% in a year.
ConocoPhillips: ConocoPhillips is valued at around $116.5 billion. The consensus estimate for COP’s 2022 earnings has been revised 16.5% upward over the past 60 days.
COP beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 12.6%. ConocoPhillips has rallied around 81.4% in a year.
ExxonMobil: ExxonMobil has a projected earnings growth rate of 27.3% for this year. The Zacks Consensus Estimate for XOM’s 2022 earnings has been revised 15.1% upward over the past 60 days.
ExxonMobil beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 5.8%. XOM shares have gained around 50.4% in a year.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
The stock of motor fuel retailer Murphy USA Inc. (MUSA - Free Report) has lost 6.7% since its fourth-quarter earnings announcement on Feb 2. While MUSA managed to score comfortable top and bottom-line beats, the negative investor reaction could probably be attributed to rising costs due to inflationary pressure and a higher wage bill. As a matter of fact, the company’s quarterly average operating expenses (excluding payment fees and rent) jumped 40.8% year over year to $30,000 on an average per store month (or APSM) basis.
What Did Murphy USA’s Earnings Unveil?
Murphy USA announced fourth-quarter 2021 earnings per share of $4.23, which beat the Zacks Consensus Estimate of $3.68 and nearly doubled from the year-earlier bottom line of $2.16. The outperformance could be attributed to a rise in the retail gasoline price, contribution from the QuickChek acquisition and a higher retail margin of 27.7 cents per gallon that was up 38.9% year over year.
Meanwhile, Murphy USA’s operating revenues of $4.8 billion soared 66.6% year over year and beat the consensus mark by $111 million primarily due to improved petroleum product sales.
Revenues from petroleum product sales came in at $3.8 billion, up 82.2% from the fourth quarter of 2020 and 2% above the Zacks Consensus Estimate. Merchandise sales, at $927.7 million, rose 24.7% year over year and outperformed the Zacks Consensus Estimate of $911 million.
Balance Sheet
As of Dec 31, Murphy USA — which opened 12 new retail locations in the quarter and closed two to take its store count to 1,679 — had cash and cash equivalents of $256.4 million, and long-term debt (including lease obligations) of $1.8 billion, with a debt-to-capitalization of 69%.
During the quarter, MUSA bought back shares worth $123.5 million.
Guidance
The company projects 2022 fuel volume in a range of 235 to 245 thousand gallons on the APSM basis. Further, Murphy USA’s 2022 guidance includes up to 45 new stores and up to 35 raze-and-rebuilds, $740-$760 million in merchandise margin contribution, and $350-$400 million in capital expenditures.
Zacks Rank & Stock Picks
Murphy USA currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy space could look at better options like Vermilion Energy (VET - Free Report) , ConocoPhillips (COP - Free Report) and ExxonMobil (XOM - 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.
Vermilion Energy: Vermilion Energy is valued at around $2.8 billion. The Zacks Consensus Estimate for VET’s 2022 earnings has been revised 40% upward over the past 60 days.
Vermilion Energy delivered a four-quarter average earnings surprise of 54.4%, including a 100% beat in Q3. VET shares have gained around 172.6% in a year.
ConocoPhillips: ConocoPhillips is valued at around $116.5 billion. The consensus estimate for COP’s 2022 earnings has been revised 16.5% upward over the past 60 days.
COP beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 12.6%. ConocoPhillips has rallied around 81.4% in a year.
ExxonMobil: ExxonMobil has a projected earnings growth rate of 27.3% for this year. The Zacks Consensus Estimate for XOM’s 2022 earnings has been revised 15.1% upward over the past 60 days.
ExxonMobil beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 5.8%. XOM shares have gained around 50.4% in a year.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Get the latest research report on XOM - FREE
Get the latest research report on COP - FREE
Get the latest research report on MUSA - FREE
Get the latest research report on VET - FREE