The 10-second takeaway
For the quarter ended March 31 (Q1), Western Refining beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew.
Margins grew across the board.
Western Refining notched revenue of $2.19 billion. The five analysts polled by S&P Capital IQ wanted to see sales of $2.15 billion on the same basis. GAAP reported sales were 6.5% lower than the prior-year quarter's $2.34 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 $0.94. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.96 per share. Non-GAAP EPS of $0.94 for Q1 were 16% higher than the prior-year quarter's $0.81 per share. GAAP EPS were $0.81 for Q1 versus -$0.60 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 10.2%, much better than the prior-year quarter. Operating margin was 7.9%, much better than the prior-year quarter. Net margin was 3.8%, 610 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.36 billion. On the bottom line, the average EPS estimate is $1.40.
Next year's average estimate for revenue is $10.26 billion. The average EPS estimate is $4.36.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,090 members out of 1,143 rating the stock outperform, and 53 members rating it underperform. Among 251 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 242 give Western Refining a green thumbs-up, and nine 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 $40.80.
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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.