Murphy USA Inc.'s (MUSA - Free Report) share price hit a new 52-week high of $121.12 during the trading session on Nov 6. As a matter of fact, the stock has surged nearly 23% since its third-quarter earnings announcement on Oct 30.
The motor fuel retailer’s strong third-quarter earnings and investor optimism, backed by healthy fuel margins, prompted the rally.
What Did Murphy USA’s Earnings Unveil?
Murphy USA reported third-quarter 2019 earnings per share of $2.55, comprehensively beating the Zacks Consensus Estimate of $1.51 and the year-ago period profit of $1.38. The strength in bottom line could be attributed to robust retail gallons and same-store sales (SSS) volumes, which rose 5.3% and 2.7% year over year, respectively.
Murphy USA’s operating revenues of $3.7 billion fell 3.4% year over year and missed the Zacks Consensus Estimate by $44 million, hurt by lower retail gasoline prices. Average retail gasoline prices during the quarter were $2.38 per gallon, down from $2.61 per gallon a year ago.
Revenues from petroleum product sales came in at $3 billion, down 5.9% from the third quarter of 2018 and below the Zacks Consensus Estimate of $3.3 billion. However, merchandise sales, at $681.1 million bettered the consensus estimate of $666 million and rose 9.2% year over year.