The 10-second takeaway
For the quarter ended June 30 (Q2), Murphy Oil whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share shrank.
Gross margins increased, operating margins improved, net margins dropped.
Murphy Oil reported revenue of $7.19 billion. The two analysts polled by S&P Capital IQ hoped for a top line of $9.59 billion on the same basis. GAAP reported sales were 2.8% lower than the prior-year quarter's $7.38 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 $1.52. The 12 earnings estimates compiled by S&P Capital IQ predicted $1.32 per share. GAAP EPS of $1.52 for Q2 were 5.0% lower than the prior-year quarter's $1.60 per share. (The prior-year quarter included $0.16 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 14.1%, 120 basis points better than the prior-year quarter. Operating margin was 6.8%, 20 basis points better than the prior-year quarter. Net margin was 4.1%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $7.03 billion. On the bottom line, the average EPS estimate is $1.04.
Next year's average estimate for revenue is $28.18 billion. The average EPS estimate is $5.41.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 500 members out of 515 rating the stock outperform, and 15 members rating it underperform. Among 120 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 115 give Murphy Oil 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 Murphy Oil is outperform, with an average price target of $62.45.
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