Please ensure Javascript is enabled for purposes of website accessibility

Why World Fuel Services Stock Is Surging Today

By Matthew DiLallo - Jul 26, 2019 at 3:49PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The energy management company provided investors with some pleasing news.

What happened

Shares of World Fuel Services (INT 0.49%) rallied more than 10% by 3 p.m. EDT on Friday. Fueling the energy management company's stock was its second-quarter results.

So what

World Fuel Services hauled in $38.8 million, or $0.58 per share, of adjusted net income during the second quarter. That's an increase from the $0.47 per share it produced in the year-ago period and was $0.04 per share ahead of analysts' consensus estimate.

Fuel tanker delivering gasoline to a gas station.

Image source: Getty Images.

The fuel services company was able to overcome a 13% year-over-year decline in the sale of bunker fuels to deliver a 20% improvement in gross profit in its marine segment. That's due to better performance in its core resale operations because of its focus on cost management.

The company's aviation segment also performed well, as its gross profit increased 10% year over year thanks to strength in its core commercial and government-related activities. Finally, World Fuel Services' land segment delivered a 3.5% improvement in its gross profit thanks to the continued expansion of its Kinect global energy services platform and its MulitService payment solutions business.

Now what

CEO Michael Kasbar said the company is "cautiously optimistic" about opportunities to help its customers comply with an upcoming fuel standards policy change. Kasbar said World Fuel Services has the financial, technical, supply, and logistics capabilities to address its customers' requirements. That has the company well positioned to continue rewarding investors, which it recently did by boosting its dividend and repurchasing $65 million of its shares.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

World Fuel Services Corporation Stock Quote
World Fuel Services Corporation
INT
$24.76 (0.49%) $0.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
356%
 
S&P 500 Returns
124%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.