The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Murphy Oil beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Margins expanded across the board.
Murphy Oil reported revenue of $7.39 billion. The three analysts polled by S&P Capital IQ anticipated revenue of $6.74 billion on the same basis. GAAP reported sales were 8.3% higher than the prior-year quarter's $6.82 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 $0.84. The 13 earnings estimates compiled by S&P Capital IQ anticipated $1.38 per share. GAAP EPS were $0.82 for Q4 compared to -$0.59 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.9%, 40 basis points better than the prior-year quarter. Operating margin was 7.2%, 550 basis points better than the prior-year quarter. Net margin was 2.1%, 380 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $7.35 billion. On the bottom line, the average EPS estimate is $1.27.
Next year's average estimate for revenue is $26.67 billion. The average EPS estimate is $5.42.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 504 members out of 521 rating the stock outperform, and 17 members rating it underperform. Among 127 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 120 give Murphy Oil a green thumbs-up, and seven 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 $65.92.
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