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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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 has no positions in the stocks mentioned above. 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.