The 10-second takeaway
For the quarter ended June 30 (Q2), Tesoro beat slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share improved significantly.
Margins increased across the board.
Tesoro booked revenue of $8.11 billion. The five analysts polled by S&P Capital IQ foresaw sales of $7.96 billion on the same basis. GAAP reported sales were 3.0% higher than the prior-year quarter's $7.87 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 $2.87. The 16 earnings estimates compiled by S&P Capital IQ averaged $2.24 per share. GAAP EPS of $2.75 for Q2 were 81% higher than the prior-year quarter's $1.52 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 10.4%, 320 basis points better than the prior-year quarter. Operating margin was 8.3%, 280 basis points better than the prior-year quarter. Net margin was 4.8%, 200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $7.96 billion. On the bottom line, the average EPS estimate is $1.58.
Next year's average estimate for revenue is $28.60 billion. The average EPS estimate is $4.92.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 910 members rating the stock outperform and 64 members rating it underperform. Among 255 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 232 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 outperform, with an average price target of $30.50.
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