HollyFrontier
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), HollyFrontier missed slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share expanded significantly.
Margins expanded across the board.
Revenue details
HollyFrontier reported revenue of $5.20 billion. The six analysts polled by S&P Capital IQ expected revenue of $5.30 billion on the same basis. GAAP reported sales were 0.6% higher than the prior-year quarter's $5.17 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $2.94. The 16 earnings estimates compiled by S&P Capital IQ anticipated $2.37 per share. GAAP EPS of $2.94 for Q3 were 19% higher than the prior-year quarter's $2.48 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 20.6%, 210 basis points better than the prior-year quarter. Operating margin was 18.8%, 170 basis points better than the prior-year quarter. Net margin was 11.5%, 140 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $4.68 billion. On the bottom line, the average EPS estimate is $1.42.
Next year's average estimate for revenue is $19.11 billion. The average EPS estimate is $7.21.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 733 members out of 766 rating the stock outperform, and 33 members rating it underperform. Among 203 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 200 give HollyFrontier a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HollyFrontier is outperform, with an average price target of $45.53.
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