The 10-second takeaway
For the quarter ended March 31 (Q1), Tesoro Logistics missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew significantly.
Gross margins increased, operating margins grew, net margins contracted.
Tesoro Logistics notched revenue of $51.6 million. The six analysts polled by S&P Capital IQ expected revenue of $53.3 million on the same basis. GAAP reported sales were 91% higher than the prior-year quarter's $27.1 million.
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 $0.67. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.47 per share. Non-GAAP EPS of $0.67 for Q1 were 81% higher than the prior-year quarter's $0.37 per share. GAAP EPS of $0.39 for Q1 were 34% higher than the prior-year quarter's $0.29 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 66.9%, much better than the prior-year quarter. Operating margin was 47.3%, much better than the prior-year quarter. Net margin was 33.2%, 860 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $59.8 million. On the bottom line, the average EPS estimate is $0.53.
Next year's average estimate for revenue is $280.7 million. The average EPS estimate is $2.28.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 51 members out of 51 rating the stock outperform, and members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Tesoro Logistics a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tesoro Logistics is outperform, with an average price target of $52.56.
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