We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Murphy USA (MUSA) Shares Jump Since Easy Q3 Earnings Beat
Read MoreHide Full Article
The stock of motor fuel retailer Murphy USA Inc. (MUSA - Free Report) has gained 6.1% since its third-quarter earnings announcement on Oct 26. The company managed to comfortably beat top and bottom-line estimates.
What Did Murphy USA’s Earnings Unveil?
Murphy USA announced third-quarter 2022 earnings per share of $9.28, which handily beat the Zacks Consensus Estimate of $7.82 and improved significantly from the year-earlier bottom line of $3.98. The outperformance could be attributed to a rise in the retail gasoline price and a higher retail margin of 37.6 cents per gallon, up 41.4% year over year.
In more good news for investors, MUSA’s board of directors recently declared a quarterly cash dividend of 35 cents per share to its common shareholders of record on Nov 8. The payout, which represents a 9% sequential increase, will be made on Dec 1.
Meanwhile, Murphy USA’s operating revenues of $6.2 billion rose 34.7% year over year and beat the consensus mark by $230 million, primarily due to improved merchandise sales.
Merchandise sales, at $1 billion, rose 7.7% year over year and outperformed the consensus mark of $983 million. However, revenues from petroleum product sales came in at $5.1 billion, falling 3.7% short of the Zacks Consensus Estimate but up 42.1% from the third quarter of 2021.
Halliburton Company Price, Consensus and EPS Surprise
MUSA’s total fuel contribution rose 59.8% year over year to $468.1 million due to margin expansion and higher volumes. Total fuel contribution (including retail fuel margin plus product supply and wholesale results) came in at 37.6 cents per gallon, which improved more than 41% from the third quarter of 2021.
Retail fuel contribution increased 85.1% year over year to $489.5 million as margins widened to 39.3 cents per gallon from 24 cents in the corresponding period of 2021. Retail gallons rose 13.2% from the year-ago period to 1,245.6 million in the quarter under review and beat the Zacks Consensus Estimate by 3.7%. Volumes on an SSS basis (or fuel gallons per store) improved 10.6% from the third quarter of 2021 to 251.8 thousand. Meanwhile, the average retail gasoline price during the quarter came in at $3.67 per gallon, up from $2.89 per gallon a year ago.
Contribution from Merchandise increased 9.8% to $205.7 million on higher sales and better unit margins, which, at 20%, moved up from the year-ago period’s 19.6%. On an SSS basis, total merchandise contribution was up 7.5% year over year, primarily on the back of 8.9% higher non-tobacco margins. Meanwhile, merchandise sales increased 5.4% on an SSS basis due to an increase in tobacco as well as non-tobacco sales.
The Zacks Rank #2 (Buy) company’s fuel gallons were up 10.7% from the prior-year period, while merchandise sales increased 5.4% on an average per store month basis.
As of Sep 30, Murphy USA — which opened 7 new retail locations in the quarter to take its store count to 1,700 — had cash and cash equivalents of $192.7 million and long-term debt (including lease obligations) of $1.8 billion, with a debt-to-capitalization of 70.1%.
During the quarter, MUSA bought back shares worth $211.5 million.
Some Key Refining Earnings
While we have discussed MUSA’s third-quarter results in detail, let’s see how some other refining companies have fared this earnings season.
Phillips 66 (PSX - Free Report) reported adjusted earnings per share of $6.46, comfortably beating the Zacks Consensus Estimate of $4.98. The bottom line also more than doubled from a profit of $3.18 per share in the year-ago quarter.
PSX’s worldwide margins surged to $26.58 per barrel from the year-ago quarter’s $8.57. The same in the Central Corridor and Atlantic Basin/Europe increased to $38.76 and $19.22 per barrel from the year-ago levels of $12.47 and $9.27, respectively. In the Gulf Coast, Phillips 66 saw the metric jump to $21.29 per barrel from $5.75 in the prior-year quarter. The West Coast witnessed an increase in margins from $7.46 per barrel in the year-ago quarter to $28.64 in the September-end quarter of 2022.
Another refining giant Valero Energy (VLO - Free Report) reported adjusted earnings of $7.14 per share compared to a meager $1.22 in the year-ago quarter. The bottom line also beat the Zacks Consensus Estimate of $7 per share. VLO’s strong quarterly results were supported by increased refinery throughput volumes and a higher refining margin.
For the quarter, Valero’s refining throughput volumes were 3,005 thousand barrels per day (MBbls/d), up from 2,864 MBbls/d in third-quarter 2021. Meanwhile, VLO’s refining margin per barrel of throughput increased to $21.34 from the year-ago level of $10.07.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Murphy USA (MUSA) Shares Jump Since Easy Q3 Earnings Beat
The stock of motor fuel retailer Murphy USA Inc. (MUSA - Free Report) has gained 6.1% since its third-quarter earnings announcement on Oct 26. The company managed to comfortably beat top and bottom-line estimates.
What Did Murphy USA’s Earnings Unveil?
Murphy USA announced third-quarter 2022 earnings per share of $9.28, which handily beat the Zacks Consensus Estimate of $7.82 and improved significantly from the year-earlier bottom line of $3.98. The outperformance could be attributed to a rise in the retail gasoline price and a higher retail margin of 37.6 cents per gallon, up 41.4% year over year.
In more good news for investors, MUSA’s board of directors recently declared a quarterly cash dividend of 35 cents per share to its common shareholders of record on Nov 8. The payout, which represents a 9% sequential increase, will be made on Dec 1.
Meanwhile, Murphy USA’s operating revenues of $6.2 billion rose 34.7% year over year and beat the consensus mark by $230 million, primarily due to improved merchandise sales.
Merchandise sales, at $1 billion, rose 7.7% year over year and outperformed the consensus mark of $983 million. However, revenues from petroleum product sales came in at $5.1 billion, falling 3.7% short of the Zacks Consensus Estimate but up 42.1% from the third quarter of 2021.
Halliburton Company Price, Consensus and EPS Surprise
Halliburton Company price-consensus-eps-surprise-chart | Halliburton Company Quote
Key Takeaways
MUSA’s total fuel contribution rose 59.8% year over year to $468.1 million due to margin expansion and higher volumes. Total fuel contribution (including retail fuel margin plus product supply and wholesale results) came in at 37.6 cents per gallon, which improved more than 41% from the third quarter of 2021.
Retail fuel contribution increased 85.1% year over year to $489.5 million as margins widened to 39.3 cents per gallon from 24 cents in the corresponding period of 2021. Retail gallons rose 13.2% from the year-ago period to 1,245.6 million in the quarter under review and beat the Zacks Consensus Estimate by 3.7%. Volumes on an SSS basis (or fuel gallons per store) improved 10.6% from the third quarter of 2021 to 251.8 thousand. Meanwhile, the average retail gasoline price during the quarter came in at $3.67 per gallon, up from $2.89 per gallon a year ago.
Contribution from Merchandise increased 9.8% to $205.7 million on higher sales and better unit margins, which, at 20%, moved up from the year-ago period’s 19.6%. On an SSS basis, total merchandise contribution was up 7.5% year over year, primarily on the back of 8.9% higher non-tobacco margins. Meanwhile, merchandise sales increased 5.4% on an SSS basis due to an increase in tobacco as well as non-tobacco sales.
The Zacks Rank #2 (Buy) company’s fuel gallons were up 10.7% from the prior-year period, while merchandise sales increased 5.4% on an average per store month basis.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Balance Sheet
As of Sep 30, Murphy USA — which opened 7 new retail locations in the quarter to take its store count to 1,700 — had cash and cash equivalents of $192.7 million and long-term debt (including lease obligations) of $1.8 billion, with a debt-to-capitalization of 70.1%.
During the quarter, MUSA bought back shares worth $211.5 million.
Some Key Refining Earnings
While we have discussed MUSA’s third-quarter results in detail, let’s see how some other refining companies have fared this earnings season.
Phillips 66 (PSX - Free Report) reported adjusted earnings per share of $6.46, comfortably beating the Zacks Consensus Estimate of $4.98. The bottom line also more than doubled from a profit of $3.18 per share in the year-ago quarter.
PSX’s worldwide margins surged to $26.58 per barrel from the year-ago quarter’s $8.57. The same in the Central Corridor and Atlantic Basin/Europe increased to $38.76 and $19.22 per barrel from the year-ago levels of $12.47 and $9.27, respectively. In the Gulf Coast, Phillips 66 saw the metric jump to $21.29 per barrel from $5.75 in the prior-year quarter. The West Coast witnessed an increase in margins from $7.46 per barrel in the year-ago quarter to $28.64 in the September-end quarter of 2022.
Another refining giant Valero Energy (VLO - Free Report) reported adjusted earnings of $7.14 per share compared to a meager $1.22 in the year-ago quarter. The bottom line also beat the Zacks Consensus Estimate of $7 per share. VLO’s strong quarterly results were supported by increased refinery throughput volumes and a higher refining margin.
For the quarter, Valero’s refining throughput volumes were 3,005 thousand barrels per day (MBbls/d), up from 2,864 MBbls/d in third-quarter 2021. Meanwhile, VLO’s refining margin per barrel of throughput increased to $21.34 from the year-ago level of $10.07.