The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Tesoro missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Tesoro notched revenue of $8.78 billion. The four analysts polled by S&P Capital IQ anticipated revenue of $8.99 billion on the same basis. GAAP reported sales were 9.6% higher than the prior-year quarter's $8.00 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $2.05. The 18 earnings estimates compiled by S&P Capital IQ averaged $2.27 per share. GAAP EPS of $1.92 for Q3 were 20% lower than the prior-year quarter's $2.39 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 8.6%, 70 basis points worse than the prior-year quarter. Operating margin was 5.8%, 170 basis points worse than the prior-year quarter. Net margin was 3.1%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $7.39 billion. On the bottom line, the average EPS estimate is $1.14.
Next year's average estimate for revenue is $30.82 billion. The average EPS estimate is $6.51.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 913 members out of 981 rating the stock outperform, and 68 members rating it underperform. Among 276 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 254 give Tesoro a green thumbs-up, and 22 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tesoro is outperform, with an average price target of $49.71.
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