The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Sunoco crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped to a loss. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Margins shrank across the board.
Sunoco booked revenue of $12.73 billion. The three analysts polled by S&P Capital IQ predicted a top line of $8.31 billion on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $9.61 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.05. The 12 earnings estimates compiled by S&P Capital IQ predicted -$0.23 per share on the same basis. GAAP EPS were -$3.39 for Q4 versus $0.72 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 2.6%, 300 basis points worse than the prior-year quarter. Operating margin was 0.5%, 200 basis points worse than the prior-year quarter. Net margin was -3.0%, 390 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $7.46 billion. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $30.37 billion. The average EPS estimate is $1.42.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 534 members out of 587 rating the stock outperform, and 53 members rating it underperform. Among 169 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 161 give Sunoco a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sunoco is hold, with an average price target of $43.44.
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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.