The 10-second takeaway
For the quarter ended March 31 (Q1), HollyFrontier beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Margins improved across the board.
HollyFrontier recorded revenue of $4.93 billion. The four analysts polled by S&P Capital IQ wanted to see a top line of $4.53 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $2.33 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 $1.16. The 12 earnings estimates compiled by S&P Capital IQ averaged $1.23 per share. GAAP EPS of $1.16 for Q1 were 47% higher than the prior-year quarter's $0.79 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 10.2%, 130 basis points better than the prior-year quarter. Operating margin was 8.5%, 170 basis points better than the prior-year quarter. Net margin was 4.9%, 130 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $5.20 billion. On the bottom line, the average EPS estimate is $1.91.
Next year's average estimate for revenue is $19.69 billion. The average EPS estimate is $5.67.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 696 members out of 728 rating the stock outperform, and 32 members rating it underperform. Among 182 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 177 give HollyFrontier a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HollyFrontier is outperform, with an average price target of $37.92.
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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.