The 10-second takeaway
For the quarter ended March 31 (Q1), Western Refining beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share shrank to a loss.
Margins shrank across the board.
Western Refining reported revenue of $2.34 billion. The four analysts polled by S&P Capital IQ expected a top line of $2.26 billion on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $1.84 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 $0.81. The five earnings estimates compiled by S&P Capital IQ forecast $0.78 per share. GAAP EPS were -$0.60 for Q1 compared to $0.13 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 -0.6%, 690 basis points worse than the prior-year quarter. Operating margin was -2.6%, 590 basis points worse than the prior-year quarter. Net margin was -2.3%, 300 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.52 billion. On the bottom line, the average EPS estimate is $1.38.
Next year's average estimate for revenue is $10.41 billion. The average EPS estimate is $3.99.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,116 members out of 1,167 rating the stock outperform, and 51 members rating it underperform. Among 257 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 248 give Western Refining a green thumbs-up, and nine 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 $21.07.
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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.