The 10-second takeaway
For the quarter ended March 31 (Q1), Tesoro crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Margins grew across the board.
Tesoro notched revenue of $8.16 billion. The four analysts polled by S&P Capital IQ expected to see net sales of $6.75 billion on the same basis. GAAP reported sales were 5.6% higher than the prior-year quarter's $7.72 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 $0.73. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.71 per share. Non-GAAP EPS of $0.73 for Q1 were 87% higher than the prior-year quarter's $0.39 per share. GAAP EPS of $0.67 for Q1 were 72% higher than the prior-year quarter's $0.39 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 5.2%, 120 basis points better than the prior-year quarter. Operating margin was 2.5%, 70 basis points better than the prior-year quarter. Net margin was 1.1%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $8.13 billion. On the bottom line, the average EPS estimate is $1.85.
Next year's average estimate for revenue is $31.58 billion. The average EPS estimate is $5.91.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 922 members out of 991 rating the stock outperform, and 69 members rating it underperform. Among 268 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 249 give Tesoro a green thumbs-up, and 19 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 $60.20.
Is Tesoro the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add Tesoro to My Watchlist.