Murphy USA Inc. (
MUSA - Free Report) reported better-than-expected results in the fourth quarter of 2018 on the back of higher retail margins. The company’s adjusted net income per share came in at $2.38, topping the Zacks Consensus Estimate of $2.30. Further, the bottom line improved from the year-ago figure of $1.03 per share.
Murphy USA’s operating revenues of $3,501.6 million surpassed the Zacks Consensus Estimate of $3,497 million. Moreover, the top line increased around 4% from the year-ago figure of $3,379.5 million. Revenues from petroleum product sales came in at $2,875.6 million.
Key Takeaways
The company’s total fuel contribution was up 26.9% year over year to $218.1 million, primarily driven by higher retail fuel margins. Retail fuel contribution jumped around 73% year over year to $248.7 million amid higher margins, which increased 65.2% from the prior-year quarter. Retail gallons rose 4.8% from the year-ago periodto 1,088.8 billion gallons in the quarter under review. Volumes on a same-store sales (SSS) basis also rose 2.1% from the fourth quarter of 2017.
Contribution from Merchandise increased 5.2% to $102 million on higher unit margins, which increased to 16.6% from 16.3% a year ago. On SSS basis, total merchandise contribution was up 2.6% year over year in the quarter under review on the back of higher tobacco and non-tobacco margins that increased 2.1% and 5.6%, respectively.
Fuel gallons rose 2.9% and merchandise sales increased 1.5% on average per store month (or APSM) basis. Fuel gallons per month rose 2.1% and merchandise sales increased 1.3% on SSS basis.
Balance Sheet
As of Dec 31, Murphy USA — whose peers include Delek US Holdings, Inc. (
DK - Free Report) , HollyFrontier Corporation and Marathon Petroleum Corporation (
MPC - Free Report) — had cash and cash equivalents of $184.5 million, and long-term debt (including lease obligations) of $842.1 million, with a debt-to-capitalization ratio of 51.2%.
Guidance
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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 >>
Key Takeaways
The company’s total fuel contribution was up 26.9% year over year to $218.1 million, primarily driven by higher retail fuel margins. Retail fuel contribution jumped around 73% year over year to $248.7 million amid higher margins, which increased 65.2% from the prior-year quarter. Retail gallons rose 4.8% from the year-ago periodto 1,088.8 billion gallons in the quarter under review. Volumes on a same-store sales (SSS) basis also rose 2.1% from the fourth quarter of 2017.
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 >>
Get the latest research report on DK - FREE
Get the latest research report on MUSA - FREE
Get the latest research report on MPC - FREE