The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Western Refining beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and GAAP loss per share expanded.
Gross margins increased, operating margins expanded, and net margins contracted.
Western Refining logged revenue of $2.28 billion. The five analysts polled by S&P Capital IQ predicted revenue of $2.08 billion on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $1.87 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 $0.48. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.60 per share on the same basis. GAAP EPS were -$0.72 for Q4 compared to -$0.08 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 20.7%, 1,530 basis points better than the prior-year quarter. Operating margin was 18.0%, 1,570 basis points better than the prior-year quarter. Net margin was -2.8%, 240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.22 billion. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $9.17 billion. The average EPS estimate is $2.90.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,113 members rating the stock outperform and 51 members rating it underperform. Among 294 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 283 give Western Refining a green thumbs-up, and 11 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 $18.94.
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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.