The 10-second takeaway
For the quarter ended March 31 (Q1), Tesoro crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Tesoro reported revenue of $7.82 billion. The four analysts polled by S&P Capital IQ expected revenue of $6.32 billion on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $6.44 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 $0.42. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.29 per share. GAAP EPS of $0.39 for Q1 were 47% lower than the prior-year quarter's $0.74 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 3.9%, 260 basis points worse than the prior-year quarter. Operating margin was 1.8%, 160 basis points worse than the prior-year quarter. Net margin was 0.7%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $8.21 billion. On the bottom line, the average EPS estimate is $1.57.
Next year's average estimate for revenue is $28.06 billion. The average EPS estimate is $3.90.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 903 members out of 965 rating the stock outperform, and 62 members rating it underperform. Among 264 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 241 give Tesoro a green thumbs-up, and 23 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tesoro is hold, with an average price target of $30.42.
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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.