Tesoro Misses Where it Counts

Just the facts, Fool.

Seth Jayson
Seth Jayson
Feb 6, 2013 at 12:00AM
Other

Tesoro (NYSE: TSO) reported earnings on Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Tesoro beat expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.

Margins grew across the board.

Revenue details
Tesoro logged revenue of $8.27 billion. The four analysts polled by S&P Capital IQ predicted a top line of $7.06 billion on the same basis. GAAP reported sales were 8.6% higher than the prior-year quarter's $7.62 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 $1.34. The 15 earnings estimates compiled by S&P Capital IQ averaged $1.41 per share. GAAP EPS were $0.19 for Q4 against -$0.90 per share for the prior-year quarter.

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 6.3%, 590 basis points better than the prior-year quarter. Operating margin was 4.1%, 600 basis points better than the prior-year quarter. Net margin was 0.3%, 190 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $6.34 billion. On the bottom line, the average EPS estimate is $0.94.

Next year's average estimate for revenue is $30.98 billion. The average EPS estimate is $5.93.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 933 members out of 997 rating the stock outperform, and 64 members rating it underperform. Among 298 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 276 give Tesoro a green thumbs-up, and 22 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tesoro is outperform, with an average price target of $51.63.

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