The 10-second takeaway
For the quarter ended March 31 (Q1), Murphy Oil missed estimates on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share improved.
Margins expanded across the board.
Murphy Oil booked revenue of $6.99 billion. The three analysts polled by S&P Capital IQ looked for sales of $7.24 billion on the same basis. GAAP reported sales were 4.8% lower than the prior-year quarter's $7.35 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.49. The 10 earnings estimates compiled by S&P Capital IQ forecast $1.46 per share. GAAP EPS of $1.49 for Q1 were 8.0% higher than the prior-year quarter's $1.38 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 14.1%, 170 basis points better than the prior-year quarter. Operating margin was 7.1%, 90 basis points better than the prior-year quarter. Net margin was 4.1%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $7.85 billion. On the bottom line, the average EPS estimate is $1.34.
Next year's average estimate for revenue is $28.19 billion. The average EPS estimate is $5.51.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 499 members out of 514 rating the stock outperform, and 15 members rating it underperform. Among 119 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 115 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 $67.57.
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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.