The 10-second takeaway
For the quarter ended June 30 (Q2), Western Refining beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share dropped significantly.
Margins contracted across the board.
Western Refining reported revenue of $2.43 billion. The five analysts polled by S&P Capital IQ predicted revenue of $2.24 billion on the same basis. GAAP reported sales were 1.6% lower than the prior-year quarter's $2.47 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $1.25. The 11 earnings estimates compiled by S&P Capital IQ anticipated $1.21 per share. Non-GAAP EPS of $1.25 for Q2 were 34% lower than the prior-year quarter's $1.89 per share. GAAP EPS of $1.46 for Q2 were 33% lower than the prior-year quarter's $2.19 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 13.5%, 480 basis points worse than the prior-year quarter. Operating margin was 11.2%, 500 basis points worse than the prior-year quarter. Net margin was 6.1%, 360 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.26 billion. On the bottom line, the average EPS estimate is $0.88.
Next year's average estimate for revenue is $9.55 billion. The average EPS estimate is $3.65.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,099 members out of 1,150 rating the stock outperform, and 51 members rating it underperform. Among 256 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 248 give Western Refining a green thumbs-up, and eight 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 $39.55.
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