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Murphy USA's (MUSA) Q4 Earnings Poised to Beat Estimates
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Murphy USA Inc. (MUSA - Free Report) is set to release fourth-quarter results after the closing bell on Feb 2. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $3.38 per share on revenues of $4.7 billion.
Let’s delve into the factors that might have influenced the downstream operator’s performance in the December quarter. But it’s worth taking a look at MUSA’s previous-quarter performance first.
Highlights of Q3 Earnings & Surprise History
In the last-reported quarter, the El Dorado, AR-based motor fuel retailer beat the consensus mark on the back of a rise in retail gasoline price, contribution from the QuickChek acquisition and a higher retail margin. Murphy USA had reported earnings per share of $3.98, ahead of the Zacks Consensus Estimate by 39 cents. Operating revenues of $4.6 billion generated by the firm had also come in above the Zacks Consensus Estimate of $4.5 billion.
MUSA beat the Zacks Consensus Estimate in three of the last four quarters and met in the other, which resulted in an earnings surprise of 20.9%, on average. This is depicted in the graph below:
The Zacks Consensus Estimate for the fourth-quarter bottom line remained the same in the last seven days. The estimated figure indicates a 56.5% improvement year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 63.6% increase from the year-ago period.
Factors to Consider
In the third quarter of 2021, the company’s retail gallons rose 11.4% from the year-ago period to 1,100.2 million. The positive momentum is most likely to have continued in the fourth quarter, thanks to a marked improvement in fuel demand on the back of rebounding road and airline travel. Consequently, the Zacks Consensus Estimate for Murphy USA’s retail fuel volumes in the fourth quarter is pegged at 1,125 million gallons, up from the prior-year quarter’s level of 1,012.7 million gallons. This is likely to have buoyed the results of MUSA.
Murphy USA is also expected to have benefited from a better margin environment. The company’s third-quarter fuel margins widened to 24 cents per gallon from 19 cents in the corresponding period of 2020. With pushed-up crude differentials, the favorable margin story is likely to have continued in the to-be-reported quarter. As a reflection of this, the consensus mark for the fourth-quarter retail fuel margin stands at 21.40 cents per gallon, suggesting a rise of 39% from the corresponding period of 2020.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Murphy USA this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Murphy USA has an Earnings ESP of +28.82% and a Zacks Rank #1.
Murphy USA is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Magellan Midstream Partners, L.P. has an Earnings ESP of +5.74% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 2.
MPLX LP (MPLX - Free Report) has an Earnings ESP of +3.22% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 2.
Liberty Oilfield Services Inc. (LBRT - Free Report) has an Earnings ESP of +2.55% and is Zacks #3 Ranked. The firm is scheduled to release earnings on Feb 8.
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Murphy USA's (MUSA) Q4 Earnings Poised to Beat Estimates
Murphy USA Inc. (MUSA - Free Report) is set to release fourth-quarter results after the closing bell on Feb 2. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $3.38 per share on revenues of $4.7 billion.
Let’s delve into the factors that might have influenced the downstream operator’s performance in the December quarter. But it’s worth taking a look at MUSA’s previous-quarter performance first.
Highlights of Q3 Earnings & Surprise History
In the last-reported quarter, the El Dorado, AR-based motor fuel retailer beat the consensus mark on the back of a rise in retail gasoline price, contribution from the QuickChek acquisition and a higher retail margin. Murphy USA had reported earnings per share of $3.98, ahead of the Zacks Consensus Estimate by 39 cents. Operating revenues of $4.6 billion generated by the firm had also come in above the Zacks Consensus Estimate of $4.5 billion.
MUSA beat the Zacks Consensus Estimate in three of the last four quarters and met in the other, which resulted in an earnings surprise of 20.9%, on average. This is depicted in the graph below:
Murphy USA Inc. Price and EPS Surprise
Murphy USA Inc. price-eps-surprise | Murphy USA Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the fourth-quarter bottom line remained the same in the last seven days. The estimated figure indicates a 56.5% improvement year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 63.6% increase from the year-ago period.
Factors to Consider
In the third quarter of 2021, the company’s retail gallons rose 11.4% from the year-ago period to 1,100.2 million. The positive momentum is most likely to have continued in the fourth quarter, thanks to a marked improvement in fuel demand on the back of rebounding road and airline travel. Consequently, the Zacks Consensus Estimate for Murphy USA’s retail fuel volumes in the fourth quarter is pegged at 1,125 million gallons, up from the prior-year quarter’s level of 1,012.7 million gallons. This is likely to have buoyed the results of MUSA.
Murphy USA is also expected to have benefited from a better margin environment. The company’s third-quarter fuel margins widened to 24 cents per gallon from 19 cents in the corresponding period of 2020. With pushed-up crude differentials, the favorable margin story is likely to have continued in the to-be-reported quarter. As a reflection of this, the consensus mark for the fourth-quarter retail fuel margin stands at 21.40 cents per gallon, suggesting a rise of 39% from the corresponding period of 2020.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Murphy USA this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Murphy USA has an Earnings ESP of +28.82% and a Zacks Rank #1.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Murphy USA is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Magellan Midstream Partners, L.P. has an Earnings ESP of +5.74% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 2.
MPLX LP (MPLX - Free Report) has an Earnings ESP of +3.22% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 2.
Liberty Oilfield Services Inc. (LBRT - Free Report) has an Earnings ESP of +2.55% and is Zacks #3 Ranked. The firm is scheduled to release earnings on Feb 8.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.