The 10-second takeaway
For the quarter ended June 30 (Q2), Tesoro Logistics 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 increased significantly.
Margins expanded across the board.
Tesoro Logistics recorded revenue of $33.2 million. The six analysts polled by S&P Capital IQ foresaw revenue of $30.0 million on the same basis. GAAP reported sales were 68% higher than the prior-year quarter's $19.8 million.
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 $0.41. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.39 per share. GAAP EPS of $0.41 for Q2 were 78% higher than the prior-year quarter's $0.23 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 61.1%, 230 basis points better than the prior-year quarter. Operating margin was 42.6%, 440 basis points better than the prior-year quarter. Net margin was 39.4%, 350 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $40.6 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $148.7 million. The average EPS estimate is $1.77.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 35 members out of 36 rating the stock outperform, and one member rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Tesoro Logistics a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tesoro Logistics is buy, with an average price target of $38.22.
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