The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Western Refining missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew.
Gross margins shrank, operating margins dropped, net margins increased.
Western Refining reported revenue of $2.25 billion. The four analysts polled by S&P Capital IQ predicted net sales of $2.31 billion on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $1.83 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 $1.45. The eight earnings estimates compiled by S&P Capital IQ forecast $1.35 per share. Non-GAAP EPS of $1.45 for Q4 were 202% higher than the prior-year quarter's $0.48 per share. GAAP EPS were $1.92 for Q4 against -$0.71 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 17.8%, 800 basis points worse than the prior-year quarter. Operating margin was 15.2%, 710 basis points worse than the prior-year quarter. Net margin was 9.2%, much better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.16 billion. On the bottom line, the average EPS estimate is $1.23.
Next year's average estimate for revenue is $10.01 billion. The average EPS estimate is $4.59.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,094 members out of 1,147 rating the stock outperform, and 53 members rating it underperform. Among 283 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 273 give Western Refining a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Western Refining is outperform, with an average price target of $32.44.
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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 owns shares of Western Refining. 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.