Western Refining Whiffs on Earnings

Western Refining (NYSE: WNR  ) reported earnings on Nov. 1. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Western Refining. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 02, 2012, at 12:52 PM, gloria15x wrote:

    Check out the conference call for the facts. What the analyst missed. Gallop expansion cost overruns.

    El Paso 4th Quarter planned equipment improvement was move to the 3rd Q.

    Both refinery improvements are a drag on overall 3rd Q production through-put.

    Less finished product , but higher cost outlays.

    The key that they are on track to better profits , they beat the streets revenue numbers by around 10%.

    Some figured it out , the stock didn't dive , the stock is back to where it was about a week ago.

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10/26/2016 4:01 PM
WNR $29.91 Up +0.19 +0.64%
Western Refining CAPS Rating: ****