The 10-second takeaway
For the quarter ended March 31 (Q1), Murphy Oil missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share shrank significantly. GAAP earnings per share expanded significantly.
Gross margins expanded, operating margins dropped, net margins increased.
Murphy Oil booked revenue of $6.64 billion. The three analysts polled by S&P Capital IQ anticipated a top line of $7.17 billion on the same basis. GAAP reported sales were 5.0% lower than the prior-year quarter's $6.99 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 $1.08. The 14 earnings estimates compiled by S&P Capital IQ anticipated $1.01 per share. Non-GAAP EPS of $1.08 for Q1 were 28% lower than the prior-year quarter's $1.49 per share. GAAP EPS of $1.88 for Q1 were 26% higher than the prior-year quarter's $1.49 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.7%, 160 basis points better than the prior-year quarter. Operating margin was 6.3%, 70 basis points worse than the prior-year quarter. Net margin was 5.4%, 130 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $7.06 billion. On the bottom line, the average EPS estimate is $1.40.
Next year's average estimate for revenue is $27.76 billion. The average EPS estimate is $5.31.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 495 members out of 511 rating the stock outperform, and 16 members rating it underperform. Among 111 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 105 give Murphy Oil a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Murphy Oil is hold, with an average price target of $65.92.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Murphy Oil. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Murphy Oil to My Watchlist.
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 has no position in any of the stocks mentioned. 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.