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.
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