The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Murphy Oil beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and GAAP earnings per share expanded significantly.
Gross margins improved, operating margins expanded, net margins dropped.
Murphy Oil reported revenue of $6.82 billion. The two analysts polled by S&P Capital IQ anticipated a top line of $6.42 billion. Sales were 4.8% higher than the prior-year quarter's $6.51 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at -$0.59. The 11 earnings estimates compiled by S&P Capital IQ anticipated $1.40 per share on the same basis. GAAP EPS of $2.09 for Q4 were 167% lower than the prior-year quarter's $0.89 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 15.5%, 290 basis points better than the prior-year quarter. Operating margin was 7.0%, 190 basis points better than the prior-year quarter. Net margin was -1.7%, 440 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $7.05 billion. On the bottom line, the average EPS estimate is $1.40.
Next year's average estimate for revenue is $27.42 billion.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 502 members out of 516 rating the stock outperform, and 14 members rating it underperform. Among 143 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 139 give Murphy Oil a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Murphy Oil is outperform, with an average price target of $65.92.
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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. 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.