The 10-second takeaway
For the quarter ended June 30 (Q2), Western Refining beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share expanded significantly.
Margins improved across the board.
Western Refining reported revenue of $2.47 billion. The five analysts polled by S&P Capital IQ predicted revenue of $2.19 billion on the same basis. GAAP reported sales were 3.5% lower than the prior-year quarter's $2.56 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 $1.89. The seven earnings estimates compiled by S&P Capital IQ averaged $1.64 per share. GAAP EPS of $2.19 for Q2 were 133% higher than the prior-year quarter's $0.94 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 18.3%, 840 basis points better than the prior-year quarter. Operating margin was 16.2%, 860 basis points better than the prior-year quarter. Net margin was 9.7%, 580 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.47 billion. On the bottom line, the average EPS estimate is $1.13.
Next year's average estimate for revenue is $10.21 billion. The average EPS estimate is $4.53.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,103 members out of 1,154 rating the stock outperform, and 51 members rating it underperform. Among 247 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 238 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 $23.19.
Are you missing a major story in the energy space? Read about "One Stock to Own Before Nat Gas Act 2011 Becomes Law." Click here for instant access to this free report.
- Add Western Refining to My Watchlist.
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.