The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Western Refining beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Western Refining logged revenue of $2.45 billion. The six analysts polled by S&P Capital IQ predicted sales of $2.24 billion on the same basis. GAAP reported sales were 2.1% higher than the prior-year quarter's $2.40 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 $0.99. The eight earnings estimates compiled by S&P Capital IQ predicted $1.45 per share. GAAP EPS of $0.07 for Q3 were 91% lower than the prior-year quarter's $0.81 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 3.3%, 650 basis points worse than the prior-year quarter. Operating margin was 1.2%, 590 basis points worse than the prior-year quarter. Net margin was 0.3%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.16 billion. On the bottom line, the average EPS estimate is $0.92.
Next year's average estimate for revenue is $9.74 billion. The average EPS estimate is $5.09.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,093 members out of 1,147 rating the stock outperform, and 54 members rating it underperform. Among 254 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 244 give Western Refining a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Western Refining is outperform, with an average price target of $30.89.
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